Eamon Ryan (Dublin South, Green Party)

Those involved in the industry say this is one of the leading countries and that we are ready to go. The ESB is committed to this, while the car companies are committed to providing cars here. The latter was the first possible constraint but we will receive the cars ahead of other countries. A Government commitment is given in the Budget Statement of the Minister for Finance to provide grant aid towards the battery cost to make the vehicles viable. We did this on the understanding that we would derive economic benefit from international ICT companies and Irish companies that would develop software required for the deployment of these vehicles. There is integration between the electric vehicle issue and the bio-fuel obligation. We should recognise that it will take time to do. A very good study at the US Department of Energy was carried out by Bob Hirsh in 2005 which showed that the average life of a vehicle was ten years in the United States. The figure is similar in Ireland. The study also shows that it takes 17 years to change half the vehicle fleet. In that time we must consider a range of options to cope with the peak in global oil production.

Senator Keaveney made an interesting point about Gilliland's farm and how this technology was developing. With new technology, particularly post-fossil fuel technology, we must recognise that we have had 100 years of oil-based technology. We must now start to support the alternative system in order that we can get the supply chain running and wean ourselves off the fossil fuel industry. That is the green agenda.

Senator Twomey made some interesting points. He referred to taxation and carbon. My Department is in continuous discussions with the Department of Finance about the upcoming Finance Bill. I am keen to ensure we will have a system that will recognise carbon reductions through the use of bio-fuels. We must see if we can develop this system within the Finance Bill as it progresses.

The Senator referred to the work undertaken in County Wexford. In the plants in New Ross waste material is used, while growers in the county took the risk at an early stage and planted rapeseed, using it for oil and fodder. These are the dual benefits. I commend those who were pioneers in this regard.

Senator Quinn and others referred to energy input and energy output. That is the crux of the matter. I heard Professor Charles Hall from the University of New York speak on this matter. He engages in an analysis of the energy return on energy investments based on natural systems analysis. It is perturbing. The energy return we get from oil discovered through offshore oil exploration is 20:1. Some 20 units of energy is the result of the input of one energy unit. In the case of bio-fuels, it would be a fraction of that figure. We will be lucky if it is two or three times the energy input. It is not easy. We will never have anything like oil, the most transportable, energy dense, marketable energy product we will ever have. Three tablespoons of oil represents eight man hours of labour. It is a remarkable material which will not be easy to replace. We must be hyper energy efficient and ensure diversity of supply, including our indigenous renewable resources. Bio-fuels are one of these resources which we are trying to develop.

I welcome the supportive comments of the Senators. I am aware of their concerns with regard to the requirement for us to be careful about using this developing technology in order that it will not lead to problems on far distant shores. I look forward to this being an opportunity for Irish farming, a view we all share.