Mr. Kevin Brady:

The first question was on the renewable energy directive and moving more towards the Paris Agreement target. We are doing that. The biofuels obligations scheme to date has been aimed at complying with the renewable energy directive and meeting that target but in our recent consultation we set out new objectives for the scheme. The first objective is lowering emissions. The second is contributing to overall renewable energy and the third is complying with the renewable energy directive. We are now putting front and centre that this is no longer just about compliance with the renewable energy directive but about emissions reduction and contributing to what is required under the Paris Agreement.

The second question was on car compatability. In a previous session the Deputy mentioned that pumps have E5 fuel displayed on them such that people know now what it is and that it is safe to put it in their car. When E10 is introduced on some pumps an E10 fuel label will have to be clearly displayed in order that people will be aware it. In regard to compatibility of cars, we are confident that all cars registered from 2011 onwards are compatible with E10 fuel. The vast majority of cars registered prior to 2011 are likely to be compatible but we do not have assurance from the manufacturers, etc. There may well be a need for a type of protection grade. In other words, E5 fuel might be maintained at a designated number of filling stations in order that people who have older vehicles, in respect of which the manufacturer will not give an assurance in regard to E10 fuel, will be able to access it. This barrier is what is known as "a blend wall". The reason many of the fuel manufacturers have not moved to E10 fuel, despite the price being relatively low-increase, is they cannot give their customers the assurance that it is safe to use in all cars. In 90% or more of cars it will be fine but there is a communication piece here, similar to leaded and unleaded fuel. We are teasing this out in the consultation. We can be confident about cars registered from 2011 onwards but there are many cars in the fleet that are registered prior to 2011.

In regard to achieving the 10% target by 2030 and if we should do it earlier, the climate action set that target at 2030, but it can be achieved before then. In terms of moving from 6% biofuels in diesel to 12% in diesel, it can be a graduated increase whereas in regard to E5 and E10 in petrol there is no E7 or E8. In many ways, the increase will be a big one but the ethanol increase will probably happen in the first half of the next decade, with some of the higher level diesels - 7% is the blend wall for diesel - happening in the back end of the next decade. Again, part of this consultation is gathering the evidence from stakeholders, including the oil industry and so on, to better understand it.

On the final question regarding the heating sector and the company mentioned by the Deputy, we met the company recently on this issue. In the biofuels consultation, we included a specific question on the heat sector. Biofuels, when used outside of transport, are known as bioliquids. The question was around if there should be an obligation on the heat sector. Article 23 of the renewable energy directive provides for such an obligation. We do not have one to date but it is an issue we are examining, having posed it in the consultation. In a recent public consultation on the energy efficiency obligation scheme we included a similar question because there are different stakeholders in this sector which deals more with home heating oil than biofuels. We are told that a certain level of blending is possible in home heating oil. With minor adjustments existing boilers can utilise bioliquids. The concerns are around what will happen when what is known as fatty acid methyl ester or biodiesel is held in a tank over a long period. When a tank is half full at the end of winter the contents remain in it, largely unused for an entire summer. There is a problem with separation in that a more viscous or gloopier biodiesel can block up the boiler. There is need for some adjustments. It is not a simple process but we are examining it as one we think could contribute, not just in terms of oil but potentially in gas. Biomethane was mentioned earlier. It is a potential means of supporting gas as well.