Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

A recent report produced by Rethink Pylons stated that converting Moneypoint from coal to biomass would meet our targets of 40% without the need to upgrade the grid or for further wind development. It argued that the conversion would cost €380 million, which is approximately 10% of the cost of upgrading the grid. The decision on the fuel type to be used would be a matter for the operator. However, there are a number of wider issues that would demand further consideration and deliberation. In summary, the amount of biomass needed to complete the conversion is 6.4 million tonnes on a continuous basis. Such an amount would not actually be available in Ireland and most of it would have to be imported. Such large scale levels of imports would call into question the environmental sustainability of such operations as well as raising transport and land-use issues. Any support for biomass at Moneypoint would require State aid approval. Were tariffs similar to those for biomass under REFIT 3 to apply, the cost of the public service obligation, PSO, would significantly exceed the cost of the 310 MW supported under the REFIT 3 scheme, without making any contribution to renewable heat targets.

As I said earlier, we will have an opportunity in a few week's time to debate these issues more fully.

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