Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

91. To ask the Minister for Communications, Energy and Natural Resources the role he sees for energy crops in meeting Ireland’s energy requirements; and if he will make a statement on the matter. [20217/13]

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

To meet our binding target of 16% of all our energy to be from renewable sources by 2020 as set out in the EU renewable energy directive, the Government is committed to increase renewable energy to 40% in the electricity sector, 10% in the transport sector and 12% in the heating sector. The Sustainable Energy Authority of Ireland has modelled in its energy forecasts for Ireland for 2020 that energy from biomass, or bioenergy, in 2020 will account for approximately 5% of our electricity requirements, approximately 10% of our heat requirements and, in the form of bio-fuels, will contribute around 9% of the energy required in the transport sector. This will be a significant challenge and we will need to mobilise biomass from all available sources. This means making the best possible use of forestry resources and increasing the amount of energy crops available.

The role that energy crops will play in meeting renewable energy targets will depend to a large extent on the willingness of land owners to change land use, the availability of long-term markets and the revenue generated by energy crops compared to traditional farming on the same land. The REFIT3 scheme is designed to incentivise the addition of 310 MW of electricity capacity produced from biomass technologies to the Irish electricity grid. It contains incentives for co-firing of biomass in peat powered generation plants with a premium for the use of energy crops. Also, since 2007, the Department of Agriculture, Food and the Marine has run the bioenergy scheme, which offers grant supports to incentivise new plantation of energy crops.

Before the end of June, I will publish a national bioenergy strategy which will set out in detail the actions required to facilitate as great a contribution as possible by the bioenergy sector to the 2020 renewable energy targets.

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Will the recent decision by the European Commission to place a maximum cap of 5% of total transport fuel for bio-fuels have any impact on energy crops? Prior to converting the peat fired plants to biomass, a full cost benefit analysis of the implications for the energy generation, cost and security should be undertaken. Has the Minister any plans to carry out such a study?

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

The matter to which Deputy Moynihan referred of the change from 10% to 5% on bio-fuels is not yet a decision of the European Union. He is correct that there is a proposal from the European Commission. The proposal, known as ILUC, indirect land use change, is being progressed by the Irish Presidency, jointly between myself and the Minister for the Environment, Community and Local Government, Deputy Hogan.

Deputy Moynihan is probably correct. It probably will ultimately get approval and will be the decision. He is also probably correct that it makes sense in that one would question whether land that is capable of producing, for example, other crops, ought to be tied up producing biomass. It also makes sense to ask how we can source the raw material for some biomass otherwise. That debate is ongoing. The NGOs, for example, have strong views on it. They have strong views about the implications for Third World development, etc. Even if there is no agreement at present between the various member states, it is likely to lead to a decision. Obviously, that must be taken into account by us. We are attempting to put together a bio-energy strategy and as I stated, the hope is that by the end of June we will be in a position to advertise that.

It is part of the programme for the Government that we would examine the possibility of the development of a bio-energy company in terms of the synergies that might exist between Bord na Móna and Coillte.

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

There are three Members offering.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

I beg the Leas-Chathaoirleach's pardon.

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I will take brief supplementary questions.

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Are there advanced discussions or plans on the bio-energy company bringing the strengths of both Bord na Móna and Coillte, of which the Minister spoke?

Denis Naughten (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context | Oireachtas source

Returning to the Minister's point, there is a significant issue of competition between poor people's food and rich people's fuel. Have any steps been taken to halt grain-based bio-fuel production because it is pushing up the price of food for the poor but also forcing up through the roof the price of animal feed? The extension into 2013 of the drought in the United States in 2012 is putting considerable pressure on grain production, some of which is going into bio-fuels and having a knock-on impact on the fodder crisis in this country because it is pushing the price of feed beyond the purchasing ability of many farmers. Wearing his EU Presidency hat, can the Minister ensure that the EU takes leadership on this issue and ban the use of grains in the manufacturing of bio-fuels, both in Europe and internationally?

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The Minister stated earlier that he was meeting ESB or ESB Networks this afternoon. I ask him to ask them to outline, if they could, the criteria used to assess and set the price for a connection to the grid. I am aware of at least three good biomass projects which are stalled because of what appears to be an extortionate request in terms of cost for connection to the grid.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

The answer to Deputy Moynihan's question is "Yes". The possible synergies between the two companies are being explored. It would be premature to state that final conclusions have yet been reached but I think I could also speak for my colleague, the Minister for Agriculture, Food and the Marine, Deputy Coveney, in that we are probably agreed that the mooted privatisation of Coillte looks more unlikely every day.

A protest in this regard over the weekend was covered in the media. We are ad idemon this issue, but it is premature to draw any conclusion. The prospect of the two companies being used to create a serious bioenergy company is something with which we need to persist. There are definite possibilities there.

Deputy Naughten's convenient summary of poor people's food being sacrificed for rich people's fuel is a phrase I will remember in my discussions in Europe. This is a central feature of the debate and ongoing discussion. I have met representatives of the NGOs who have elaborated on the arguments Deputy Naughten has made and they seem to make a great deal of sense. In discussions in Europe, while I have represented the views of the NGOs, I do not believe I have expressed it in terms of banning grain in the granular way that Deputy Naughten has expressed it. However, it probably comes back to the same thing. Where there is arable land that is capable of producing the raw material for food or where there is land that is capable of being made arable to produce food, is that the best use for it? In fairness to colleagues, I have to say that is well represented in the Council of Europe.

I will take up the point Deputy Colreavy raised. Based on my meetings with biomass companies, I understand they are satisfied with the REFIT 3 scheme and that is not the impediment. I will be happy to raise the particular point he raised about the price of connection to the grid this very day.