A report carried out on behalf of Bord Gáis has found that at least 7.5% of Ireland's natural gas demand could be met using grass and waste.
The study, by University College Cork and Ernst and Young, says the biomethane industry could make a significant contribution to the ‘green tech’ sector in Ireland.
It outlines how grass, municipal waste and agricultural slurry could be converted into gas.
It says the ‘grass to gas’ process could create enough gas to heat the equivalent of 300,000 homes a year.
The technology is already in use in countries like Denmark and Germany where farmers have formed cooperatives to finance, build and run renewable gas facilities.
Bord Gáis said capturing the renewable gas would be a considerable step in addressing Ireland's renewable energy and waste management objectives.
It said it would help reduce our dependence on energy imports and provide jobs and new business opportunities among the farming community.
The company said while there are obstacles to making renewable gas a viable energy source here it believes that they can be overcome in a relatively short timeframe.
