Mary Upton (Dublin South Central, Labour)

I welcome this Bill and compliment Deputy Naughten on introducing it. Mankind faces two equally great challenges — climate change and peak oil. Managing our reactions to all the consequences these challenges throw up will impact on the future course of mankind.

Local challenges are also being faced in Ireland on a daily basis by farmers. There are challenges in making a living from the land in the face of the running down of agricultural supports from the EU, competition from the south and finding alternative crops to sugar beet. Introducing mandatory blending of all motor fuels is an essential step we must take if we are to rise to the challenges we face due to climate change and peak oil. We must also try to solve the problems faced by Irish agriculture.

Biomass is the only renewable energy source that can replace fossil fuels directly, either completely in small-scale applications or by blending solid, liquid or gaseous biomass fossil fuels in large-scale applications. Thus, co-utilisation of biomass fuels with fossil fuels or bio-fuels is a quick and relatively reliable way to reduce greenhouse gas emissions, preserve natural resources and cope with excess agricultural production capacity.

Together, German, French and Italian bio-fuel production is 18 times greater than that of the USA. Europe is the global leader in biodiesel production and between 2003 and 2004, European bio-fuel production increased by 26.6%. Voting in favour of this Bill will not lead to motor fuel shortages. It will, due to increasing demand for bio-fuels, increase Ireland and the EU's energy security.

Bioenergy is often said to be carbon neutral, on the basis that the carbon released on burning the fuel is equal to the carbon removed from the atmosphere when the crop is growing. There are, however, limits to the extent to which conventional biodiesel or bioethanol can be combined with fossil fuels without requiring alterations to the current distribution infrastructure or engine requirements. In accordance with this Bill, the proportion by volume that is blended with the motor fuel should be subject to review.

The British Society of Motor Manufacturers and Traders states that while commercial bio-fuels, such as bioethanol, can reduce well to wheel emissions by between 7% and 77%, second generation bio-fuels that will become available within the next five years can exceed these carbon savings. This is endorsed by the Biosciences Federation and British Royal Society for Chemistry, which maintain that although first generation bio-fuels are necessary in the short to medium term, greater carbon savings can be achieved from second generation bio-fuels produced from biomass.

The use of biobutanol represents a possible first step between existing first generation bioethanol and more advanced bio-fuels that are still in pre-commercial development. Biobutanol exhibits distinct advantages over conventional bioethanol such as greater energy density and greater compatibility with existing infrastructure and distribution networks. Produced from the same feedstocks as bioethanol, such as wheat and sugar beet, biobutanol can also be blended with petrol at levels of up to 10% by volume without requiring vehicle modification or the invalidation of warranties.

Using anaerobic digestion to generate energy from organic waste provides the opportunity to use wet biomass, such as livestock slurry, sewage sludge and food waste. Anaerobic digestion is the breakdown of organic matter by micro-organisms to produce biogas, comprising 40% carbon dioxide and 60% methane, as well as liquid and solid bioproducts. Biomethane is equally suitable as a vehicle fuel, a source of heating or to create electricity.

Some experts have suggested that a large-scale transfer from using rapeseed oil for food to using it for fuel might disrupt world commodity markets. In this context, it is interesting to note that, in general, food crops are no more than 50% efficient. For every tonne of food produced, a further tonne of potential biomass is produced. A second generation bio-fuel such as lignocelulosic ethanol and biomass liquid transport fuels, that use organic waste material such as straw and woody waste, would have a less disruptive influence on world commodity markets for food than first generation bio-fuels. Large amounts of wood waste go to landfill at present and this could easily be used to generate bio-fuels for transport.

Despite genuine concerns about its impact on biodiversity, it is clear that Ireland has the agricultural experience, capacity and land to grow the bio-fuels necessary if we are to fulfil our obligation to meet the long-established EU target of 5.7% of the EU's fuel mix to comprise bio-fuels by 2010. We have begun in Ireland with a variety of fiscal measures but there is much more to do. We can do considerably more by introducing a mandatory blending of all transport fossil fuels with biofuels, which would at the same time stimulate demand and supply of biofuels in Ireland. The need for research and development has been mentioned. As research takes some time, we need to invest much more significantly in that area to bring about proposals for the appropriate mix with a view towards development particularly in the agriculture area.

As my colleagues have done, I draw attention to the disallowing of the REP scheme and the growing of alternative crops, which makes no sense. Farmers have rightly had grave concerns about how the closure of the beet industry was handled. It has been a huge disappointment that sugar beet was not considered an alternative fuel crop as could and should have been done. Making mandatory the blending of all motor fuels will not on its own conquer the challenges we all face as a result of climate change, peak oil and the end of supports for Irish agriculture. The time when we will need to introduce mandatory blending of all energy sources, not just motor fuels, may not be as far away as we might hope and think. The one thing we can do today to delay that time is to vote in favour of the Bill. It would assist in overcoming the challenges of peak oil, climate change and the phasing out of agricultural supports.

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