Ciarán Lynch (Cork South Central, Labour)
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Question 73: To ask the Minister for Communications, Energy and Natural Resources if there are plans to invest in seaweed being used for bio-fuels; the situation in relation to using seaweed for bio-fuels; and if he will make a statement on the matter. [14659/08]

Eamon Ryan (Dublin South, Green Party)
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The programme for Government commits to the development of an Irish bio-fuels industry and to the sustainable development and deployment of indigenous bioenergy resources. In the context of our renewable energy ambitions we need to mobilise as yet untapped biomass resources, including the potential offered by marine algae or seaweed. Work is under way to determine what the marine environment might contribute to developing the national bio-fuels capacity. The analysis will include identifying the necessary research, development and demonstration projects to realise any such potential.

Sustainable Energy Ireland, SEI, is therefore commissioning analysis of the potential of marine algae as a source of bio-fuels for Ireland. This work will provide a comprehensive basis on which to inform research and development work on the potential use of marine algae for renewable energy. It will also provide data on the bio-fuels capacity that could potentially be derived from the marine environment. Tenders for the study are currently being evaluated by SEI.

I am advised that the study will take up to six months once the tender is awarded. In light of its findings we will be better equipped to quantify the scale of the potential marine resource for bio-fuels development and to develop a strategy. I expect SEI to work very closely with the Marine Institute on this initiative.

Liz McManus (Wicklow, Labour)
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I welcome the initiative taken by SEI and the Minister to explore this particular possibility to use seaweed or algae for bio-fuels. A source, where there is a nutrient rich environment, is available to us and regrettably we have had problems in respect of agricultural run-off. Is it possible for the Departments of Communications, Energy and Natural Resources and Agriculture, Fisheries and Food to undertake a joint project when the research is complete? It may be limited in its application but it is a source that creates no problems with regard to the production of food. As in other areas, second generation bio-fuels can deal with a form of waste or the result of contamination that can be put to productive use.

Eamon Ryan (Dublin South, Green Party)
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I agree with the Deputy about the potential benefits in this area. We have a fundamental problem regarding energy in that we will never get anything as good as petrol. I saw an analysis recently which showed the return on energy investment. For exploration petroleum which is extracted and processed, there is a return of 20 units of energy for every single unit of energy put in. The difficulty we have with biofuels and other new replacement technologies is that the energy return can be of the order of one or two to one. For every unit of energy put in, one might only get one unit of energy back. The real potential from second generation biofuels is the technology which allows that leap forward. Biodynamic biological processes are being used to get a greater return.

There is a close connection between the Irish Marine Institute and our Department in this area, and with Science Foundation Ireland. Many of the research projects our Department set up in the Beaufort and geoscience area were targeted at this issue. Many of the marine projects now come under the remit of the Minister for Agriculture, Fisheries and Food, but there is still a significant connection, in tandem with a strong working group. Our renewable energy development group met for the first time three weeks ago and it includes representatives from the Department of Agriculture, Fisheries and Food and the Irish Marine Institute as well as our own Department officials — recognising that the initiative must be interdepartmental.

David Stanton (Cork East, Fine Gael)
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What degree of international liaison is going on in this area? Is the Minister aware of some very exciting research in the United States, for example, where they are producing biodiesel from algae not in the marine environment, but in tanks onshore using light energy? It is very exciting and advanced. Rather than reinventing the wheel, what type of international liaison is going on?

When we speak of using other materials for biofuels, has the Minister's Department or the Government looked again recently at sugar beet to produce ethanol? This crop was grown widely in Ireland and the technology and expertise exists. Does the Minister agree that it produces a very high return and it would be very worthwhile to investigate its possibilities?

Eamon Ryan (Dublin South, Green Party)
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This is an international issue because all the main energy companies are now investing in what is called clean energy finance. Investment in this area has gone from about €24 billion in 2006 to roughly €110 billion last year, a massive growth. There is enormous interest where any research initiative is exhibited by international financial people to determine who gets the technology to develop it. We are keeping our eyes on what developments are occurring internationally.

In terms of sugar beet and the use of ethanol as a development technology, this again is a highly scientific area and one must comply with the conditions the EU is seeking, namely, an assessment of the emission returns, which can otherwise be defined in terms of the return on energy investment, and the source. The Brazilian Government maintains ethanol produced in Brazil gives a much higher return in terms of the reduction in emissions than similar Irish technology. That has to be proven and tested.

Going back to what we discussed earlier in terms of the food price rises that are occurring, the real problem is developing around ethanol because the use of corn and maize for its production in the mid-west of the United States in particular is driving up prices, as well as oil prices generally, since oil is an input for food production.

This is something we can discuss in more detail when we come to debate our biofuels obligation, but I am reluctant to hang my hat on any single technology at present, particularly where one is competing against Brazil directly. The Brazil technology is based on sugar cane, which fits the sustainability criteria, as long as rain forests are not being knocked down, and they have a much higher return on their energy inputs. However, that is not to rule it out. Where we had the infrastructure in place, it made sense to use it. Whether it may be retrospectively introduced is something we have to look at in more detail.