Alan Dillon (Mayo, Fine Gael)
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220. To ask the Minister for Transport, Tourism and Sport to provide an update on the alternatively-fuelled heavy-duty vehicle purchase grant scheme introduced in March 2021; the current status of the scheme; how many applications have been received; how many have been approved; the cost of the scheme to date; the effectiveness of the scheme in promoting the adoption of alternatively-fuelled large vans, trucks, buses and coaches; and if he will make a statement on the matter. [29503/23]

Alan Dillon (Mayo, Fine Gael)
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223. To ask the Minister for Transport, Tourism and Sport given the positive response to the alternatively fuelled heavy-duty vehicle purchase grant scheme, the details of the additional funding allocations for the scheme in 2023; the way these funds will be utilised to further support the purchase of alternatively-fuelled heavy-duty vehicles; the outcomes that are expected from this increased investment; and if he will make a statement on the matter. [29507/23]

Eamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 220 and 223 together.

Providing a sustainable, low-carbon transport system is a key priority of the Irish Government. The Programme for Government commits to 7% average annual emissions reduction to 2030; ultimately, the goal is for a zero-emission mobility system by 2050. Decarbonisation of heavy-duty vehicles will be key to achieving this objective in the transport sector.

To promote the decarbonisation of the heavy-duty sector, my Department launched the Alternatively-Fuelled Heavy-Duty Vehicle (AFHDV) Purchase Grant Scheme in March 2021. The Scheme, which is administered by TII, is intended to help bridge some of the difference in purchase price between conventional heavy-duty vehicles (HDVs) and those powered by alternatively-fuelled power-trains. To accord with EU State Aid rules, grant levels under the Scheme are calculated as a percentage of the difference in price between a conventionally-fuelled diesel HDV and its alternatively-fuelled equivalent. Maximum grant levels for eligible vehicles depend on the size of the enterprise applying for the grant.

The success of the AFHDV scheme was heavily impacted by the Covid-19 pandemic and global supply chain issues which resulted in significant delays in the grant applicants receiving their vehicles and drawing down their AFHDV grants. Transport Infrastructure Ireland is now processing 2021 and 2022 grant application drawdowns.

The AFHDV purchase grant scheme is open for applications in 2023 with a budget of €5million. The scheme has been gaining momentum recently with new applications and fund drawdowns.

To date the scheme has processed 49 applications.

Scheme Figures – Costs, committed grant funding and grants paid or in payment process.

Alan Dillon (Mayo, Fine Gael)
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221. To ask the Minister for Transport, Tourism and Sport to elaborate on the expansion of the accelerated capital allowance scheme for natural gas propelled vehicles and equipment to include hydrotreated vegetable oil, HVO, and hydrogen vehicles and equipment; the measures that have been taken to facilitate the inclusion of HVO and green hydrogen technology within this scheme; what impact is expected from this expansion; and if he will make a statement on the matter. [29504/23]

Eamon Ryan (Dublin Bay South, Green Party)
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My colleague, the Minister for Finance has responsibility for the Accelerated Capital Allowance (ACA) Scheme for Gas Vehicles and Refuelling Equipment. I understand that the Minister for Finance will review the scheme in 2024.

The scheme, which was introduced in the Finance Act 2018, provides for a 100% up-front wear and tear allowance for qualifying expenditure incurred in a given year. The Finance Act 2021 extended the scheme to 31 December 2024 and amended it to provide that hydrogen powered vehicles and refuelling equipment qualify under the scheme.

The scheme incentivises the use of natural gas, biogas, or renewable gas of non-biological origin such as green hydrogen in large vehicles such as HGVs and buses, supporting low- and zero-carbon emission alternative technology to diesel or petrol, toward achievement of 50% reduction in carbon emissions in transport by 2030.

As Minister for Transport, I have responsibility for complementary grant support provision through the alternative fuel heavy goods vehicle (AFHDV) grant, including grants awarded for the purchase gas powered vehicles.

Hydrotreated Vegetable Oil (HVO) is a bioliquid, which when used in transport is referred to as a biofuel, therefore does not qualify under the ACA scheme. It is understood that HVO can be used with no issues in conventional diesel vehicles and fuel distribution infrastructure blended with diesel or at 100% HVO.