Dr. Ger Devlin:

I thank the committee and the Chair for the invitation to IrBEA to discuss the key issues we are dealing with today. Attending with me is Mr. Tom Bruton, who is head of policy in IrBEA and Mr. James Cogan, who is leading our new biofuel subgroup within the association.

IrBEA represents more than 200 members in the bioenergy space, from biomass supply to biomass technology, and in bio gas and liquid biofuels. Bioenergy itself is one of the largest sources of renewable energy in the EU. It has not factored so well from an Irish perspective, but the opportunities are great in that it is unique and can contribute to each of the targets, be it heat, transport or electricity. From an economic perspective the benefits of bioenergy are large, in that over 3,600 new permanent jobs in the bioenergy sector can be created if the targets we are trying to achieve are met. Some €1.5 billion of direct investment in this sector is achievable. Some 8,300 workers will be employed during construction and installation, and it will provide sustainable family farm incomes in the Irish agricultural sector. The energy import bill can also be reduced by 7.5% by the provision of a secure, competitive energy source for Irish homes and businesses.

The primary barriers to fulfilling bioenergy's real potential revolve primarily around the slow implementation of the support scheme for renewable heat. We feel that state aid is currently too slow and we would like to see it open for applications for 2018. Not enough effort has been directed towards developing bioenergy as a source of combined heat and power, and indeed district heating. We also have the slow implementation around the RESS. Currently it is at 22.7% and the target is 40%. Bioenergy is factored very poorly in subsidy schemes around electricity in previous years. There has been a lack of effort towards mobilising our indigenous biomass for these particular bioenergy markets. There is a slow increase around the BOS, which we will use to decarbonise our transport sector.

Our recommendations for the support scheme for renewable heat include the opening of applications from mid-2018, with a push to expedite the whole state aid approval process. We would also like to see improved tariffs post-2018 for a bigger uptake of bioenergy projects. Sustainability criteria should be in line with the renewable energy directive, RED 2. Robust eligibility criteria is key, and there should be a simple application and approval process for projects that get off the ground. Positive uptake will really only happen with the correct tariffs in place. We could follow the mainland United Kingdom as a very good example of how to make that happen. There should also be a low ongoing administration burden from that perspective. Allowing useful heat to cover the drying of wood is a key element that we would certainly lobby for.

Looking at the BOS, which applies to transport fuel, Ireland has only reached 5.2% in over ten years. We are hoping to close the gap, with another 5% in less than three years. That will be difficult. There has been low development because of the low deployment rates in biofuels across the transport fleet. Some 40% of all engine fuels are not currently included in the BOS. One of the recommendations that IrBEA made in the consultation response to the Department in January is that that 40% should be included; it is low-hanging fruit. Fuels in the aviation, agriculture, marine and construction sectors are not included in the BOS.

According to both the International Energy Agency and the European Commission, use of biofuels needs to grow by a factor of ten if we are to stay within the 2° climate change target. I believe we need to move to 12% biofuel. If the UK can move, Ireland will also follow. We will probably need to petition to the UK to make that happen.

In terms of recommendations on a RESS, we certainly need to see it implemented by 2019. However, the state aid issue needs to be expedited.

Technology options are key for bioenergy. We will not compete if it is technology neutral. All renewables can play a role, but specific technology options are key for bioenergy to be successful. Of course, that 40% baseline needs to be more ambitious. We have modelled on the basis that 55% is achievable while still driving down the cost of electricity for consumers.