David Stanton (Cork East, Fine Gael)

OECD data indicate that just 10% of the research and development budgets of EU Governments are related to renewable energies, whereas more than 50% of such budgets are devoted to conventional energy technologies. We need to spend much more on research into renewable energy.

On an issue that affects the Munster area and was touched on by Deputy Connaughton, it is possible that the Minister, Deputy Noel Dempsey, is aware of the closure of the Mallow sugar plant. There is substantial interest in this matter in my local area. I draw the Minister's attention to this important subject. I have been told that the Mallow plant has the capacity to produce thick sugar juice that can be fermented to ethanol. I appreciate that the Mallow plant is a commercial and privately owned operation, but I ask the Minister to use his influence to ensure it is not dismantled. We may regret it in the future if it is dismantled because it would take a long time to construct a similar plant. The existing plant has the capacity, facilities and machinery to produce thick sugar juice. Some companies are interested in converting that juice to ethanol. The ConocoPhillips plant in Whitegate, which is not too far from Mallow and has already been involved in the production of biofuels, is anxious to get involved in this sector. As an official from the Department of Communications, Marine and Natural Resources said at last week's meeting of the Joint Committee on Agriculture and Food:

There are three projects relating to biodiesel, the first of which was a pilot project by ConocoPhillips at the Whitegate refinery. It produced a million litres of biofuel. This was an innovative process, not quite the same as the regular biodiesel process. It complied with the diesel standard and could be put into every tanker.

The committee was also told that Maxol and Ford are co-operating on a bioethanol project. It is possible to make progress in this area.

Young farmers in Munster are very anxious to grow wheat or sugar beet that can be converted into thick sugar juice in the Mallow plant. It is obvious that such a development should not affect the compensation that sugar beet farmers will receive to help them to cope with their huge losses of income. If we allow the Mallow plant to be dismantled, sold and transported abroad, it will be a national disgrace, especially if we have to build a new plant in a few years' time. I am not sure where one would get planning permission to build such a plant. I was told last night that the Mallow plant has the capacity to generate enough electricity to power the town of Mallow, although I am not sure how true that is. I was also told that there is an electricity generator in the plant. When I was in Sweden, I came across a combined heat and power plant that was 10 km from the nearest town. The plant was burning forestry cuttings to generate electricity. The hot water that was produced was pumped into the town, which was involved in a district heating system. The water was taken to heat houses, using this renewable source.

We need to undertake much more research into this important topic. We need to start looking at geothermal, solar, wave, tidal, wind and hydro energy, as well as biomass.

The main point I want to make is about something that is imminent and is happening as we speak, namely, the closure of the plant in Mallow. I ask the Minister to consult his Cabinet colleagues, especially the Minister for Agriculture and Food, Deputy Coughlan, and possibly the Commissioner tomorrow when she is here, in this regard. If I get the opportunity I will raise with her as well the fact that we should retain that plant. It is stated that if the plant is dismantled, 100% compensation will be granted and if it is left there for bioethanol production 75% compensation will be granted. The main point is that sugar will not be produced there. If we can convince the European Commission to have ethanol produced there, that will be a win-win solution for everyone. I have much time for the Minister, Deputy Noel Dempsey, whom I have seen to be innovative and positive in the past, and I ask him to treat this as a serious matter. If the Mallow plant is let go we will not be able to get it back.

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