Dan Neville (Limerick West, Fine Gael)
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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.

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take this Adjournment matter on behalf of the Minister for Communications, Marine and Natural Resources. A number of initiatives are in place to support the development of a biofuels sector in Ireland. In 2005, the Minister for Communications, Marine and Natural Resources introduced a pilot mineral oil tax relief scheme for biofuels which has awarded excise relief to eight projects. As a result of the scheme, 16 million litres of biofuels will be placed on the Irish transport market by next year.

Building on the success of this scheme, the Minister launched the second biofuels mineral oil tax relief scheme in July 2006. The new scheme will be rolled out between this year and 2010 at a cost of over €200 million and will enable Ireland to reach a target of 2% market penetration of biofuels by 2008. When fully operational, the relief is expected to support the use and production of some 163 million litres of biofuels each year. The scheme was launched on 25 July and had a closing date of 28 August. Approximately 100 applications have been received across the four categories covered by the scheme. An assessment panel comprising officials from the Department of Communications, Marine and Natural Resources, Sustainable Energy Ireland and Enterprise Ireland has been convened and is currently in the process of assessing the applications received. The promoters of the project to which Deputy Neville referred have applied for excise relief under the scheme. Reflecting the requirements of openness, transparency and equal treatment of all applicants in the competition, and given that the deliberative process is ongoing, the Minister is not in a position to comment on or discuss the details of any application under the scheme. I do not therefore propose to discuss the details of the project in question.

The Government is firmly committed to the development of an Irish biofuels market and to the increased development of bioenergy generally in Ireland. In July, the Minister established a new ministerial taskforce on bioenergy as part of the ongoing policy to increase the share of indigenous renewable energy in the Irish heating, electricity and transport markets. The taskforce's members include the Tánaiste and the Ministers for Communications, Marine and Natural Resources, Finance, Agriculture and Food, Environment, Heritage and Local Government, Transport and Enterprise, Trade and Employment. The Taoiseach's office is also represented. The primary objective of the taskforce is to draw up a cohesive national bioenergy strategy by the end of the year. This strategy will also take account of EU developments and the views of stakeholders. The taskforce is being supported in its work by a senior officials' group representing the Departments concerned. Consideration of options to further increase market penetration of biofuels is a critical element of the work of the ministerial taskforce. The Green Paper on energy, which was published by the Minister, Deputy Noel Dempsey, last month, suggests a target of 5.75% market penetration of biofuels in Ireland by 2010 and the taskforce is considering the options available to Government in achieving such a target.