Larry Butler (Fianna Fail)

I welcome the Minister of State to the House. I also welcome the debate but the importance of bio-fuels could be overstated. They are important to the farming community which has the opportunity to develop a bio-fuels programme for the country but I would like the sector to focus on home heating, blending and agriculture. These three sectors have a huge future but as a long-term proposal, bio-fuels rate very low on the list in terms of what can be achieved.

Senator O'Toole referred to the importance of us getting on with bigger programmes to find alternative energy sources. The Spirit of Ireland project is an example. He stated it is only 70% efficient but it is much more than that. It is 85% efficient because the Senator has not taken the evaluations into account. Wind blows periodically and it can only be harnessed when it blows. Wind energy production has been shown to be 85% efficient and it also generates employment.

Farmers have a great opportunity with bio-fuels. As Senator O'Reilly said, approximately 100,000 hectares could be developed in the State without affecting food production. A conservative approach to bio-fuels should be taken because Ireland produces high quality food and the agriculture sector is important, given the number of people employed. Therefore, it should be supported.

I would like beet production to resume in this country. That crop brought wealth to the country and farmers benefited hugely from it. Ethanol can be made from beet but it can also be used to produce pulp for animal feed. The two sugar refineries in Carlow and Mallow are lying idle and could be used for this industry. I would like to see development in this regard.

Pressing plants for rape seed oil could formulate a business. We should also develop our willow crops. Buffalo grass needs only be sown once and, like hay, grows repeatedly. It can be manufactured into a bio-fuel. Many excellent projects could be developed in the bio-fuel area. One such is micro-wind energy. A farmer's two biggest costs are electricity and diesel. Bio-fuels could be used to produce energy on farms. Micro-wind energy could be used to generate electricity, especially for dairy farmers. Our small rivers are not used to their full extent. Small hydro systems could be installed on small rivers. They would be hugely beneficial to farmers.

Heavy frost can cause bio-fuel to freeze. This is an important factor which must be taken into consideration. The blending sector will increase miles per gallon output by at least 5% and reduce CO2 emissions by up to three tonnes, which is very important. It will also help us to meet our Kyoto commitments and avoid carbon taxes.

Bio-fuels have a place in the economy. They play a small but essential part in the bigger picture. Progress must come from people such as those involved in the Spirit of Ireland. They have made proposals, are in the process of completing their business plan and have identified two suitable sites in the west. It would be a wonderful boost for the country to be able to produce our own energy from a natural resource.