Dan Neville (Limerick West, Fine Gael)

I welcome the opportunity to raise this important proposal concerning my constituency. It is a proposal to establish a bioenergy production facility at Foynes, County Limerick. The world faces unprecedented energy and environmental challenges and both sectors are inextricably linked. A company named Capway Bioenergy intends to be part of this new system. It commenced operations early in 2005 and, to date, has constructed a pilot research facility for biodiesel production and a laboratory at Shannon, County Clare. It has also developed a skills base in biodiesel technology, operating procedures and quality control systems. In addition, it has developed a core staff whose expertise is transferable to a commercial-scale plant.

Capway Bioenergy proposes to construct a large-scale, state-of-the-art biodiesel processing plant at Foynes Port, County Limerick, that will use Irish raw materials. To this end, the company has submitted an application to the Government under the biofuels and mineral oil tax relief scheme 2 for excise duty relief for 57.1 million litres, which is 50,000 tonnes of biodiesel per annum.

The raw material of biodiesel is produced from agricultural products and residues. Capway Bioenergy will use Irish-grown rape seed oil and other oils and fats of Irish origin. Towards this end, it signed a provision supply agreement with Dairygold Co-operative and Acorn Independent Merchants Group. Capway Bionergy has provisional distribution agreements in place with three of Ireland's leading mineral oil distributors, Topaz Energy Products, Maxol Group and Tedcastles Oil Products. Furthermore, Capway has signed provisional supply arrangements with three high profile capital fleets, Roadstone Provisions Limited, STL Logistics and Pallas Foods.

In tandem with bolstering demand for native agricultural products, the project will generate high quality employment during construction and operations phases. Up to 80 jobs will be created during construction and direct employment during the operational phase will comprise more than 30 full-time positions. Indirect benefits will also be significant. I need not remind the Minister that my constituency has been devastated by three closures over the past 18 months which resulted in 1,000 job losses. This is an opportunity to reverse those losses and could represent the start of an exciting period for the development of bioenergy on the Shannon Estuary.

When fully operational, the project will offer net savings of approximately 160,000 tonnes of CO2 emissions per annum. Capway Bioenergy has selected a site for the biodiesel site at Foynes port on the basis that it supplies easy access for native and imported raw materials and an efficient distribution route to the Irish market. It is intended that the processing plant will comprise two 50,000 tonne per annum modules, with construction of the first module to commence as early as possible. It will take two years from the date of the granting of excise duty relief before the first module becomes operational and the construction project cannot commence until relief is formally granted. In August, Capway lodged an application for excise duty relief with the renewable and alternative energy division of the Department of Communications, Marine and Natural Resources.

This project merits support because, by improving energy sustainability, increasing the sustainability of the transport system, addressing the decline in the agricultural sector, bolstering and diversifying the rural economy and reducing greenhouse gas emissions, it will address many of the challenges currently facing Ireland. It would also be an excellent partner for the miscanthus experiment currently being conducted in Adare. The challenge of creating an environmentally sustainable and indigenous energy supply for Ireland's transport sector may seem insurmountable and sustainability is unlikely to be achieved in a single step. However it can be achieved through a series of small steps — through evolution rather than revolution. Capway Bionergy is committed to making a positive step towards that goal, so I urge the Department of Communications, Marine and Natural Resources to allow Capway Bionergy to ameliorate the difficulties which have arisen in my constituency over the past 18 months.

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