David Norris (Independent)

While I understand the prudent caution of Senator O'Reilly, I am fairly confident in the young but very dynamic bio-fuels industry that has been established particularly in the region of County Wexford. It is important we understand that this is within the European context and it is a requirement under European directives among other things. That makes this very important legislation because it introduces for the first time a bio-fuel obligation within the Irish regime, under the terms of which there will be an initial bio-fuel penetration rate of 4.166% and this is to be increased over the years in line with targets set by the European Union. The intention is that by 2020, we will have a 10% penetration of the market, in other words, that 10% of the constituents of diesel, for example, will have to be bio-fuel. As a result of the passage of this Bill, which I expect today, from 1 July 2010, all petrol and diesel on sale in the country will have to include at least 4.166% and that is the important figure mentioned by the Minister. The implication of this provision is serious. It means that 220 million litres of fossil fuel will be substituted with bio-fuels and this will increase to 500 million litres by 2020. This is to be welcomed, despite the caution expressed prudently by Senator O'Reilly. It is good for our environment. We have agreed to reduce carbon emissions as part of our international environmental commitments and I know both the Minister and the Green Party are passionate on this issue. An important step towards reaching the goals will be to increase the use of sustainable and renewable energies which include bio-fuels. It means we will be taking a considerable amount of fossil fuels out of vehicle engines and this has certain positive benefits in terms of the lifespan of the engines and provides for greater lubricity.

Our reliance on importation will be lessened. When these amendments were first mooted in the House we spoke at length about the situation regarding Brazil, for example. The lessening of our dependence is a significant factor in terms both of the economy and of the environment.

A number of speakers mentioned the plant at New Ross. We should pay tribute to the people involved in this project. It also involves the wider community because this company, Green Biofuels, based in New Ross, employs 22 people and this number will be expanded. The figures mentioned in the House were 1,000 jobs and I hope this will happen, particularly in the Waterford-Wexford area where there has been a significant number of industrial closedowns. Also involved is the Wexford farmers' co-operative involving the interests of 4,000 farmers in that area. Waste materials will be used to manufacture this renewable diesel substitute. I have been reliably informed - I believe and hope this information is accurate - this company will be able to produce more than 34 million litres of bio-fuel annually. It is a useful absorption of a number of waste products such as oils of various kinds, including cooking oil and this makes it a second generation bio-fuel. When it is produced, this is equal to minimum savings of 90,000 tonnes of CO2 annually. It was suggested in a previous briefing that this manufacturing technique is so modern and sophisticated that they can capture that release of gas as another by-product. Therefore, the savings of 90,000 tonnes of CO2 mean that we will not have to import this kind of gas in such quantities. It is the equivalent of taking 25,000 cars off the road, which is a significant contribution. It is a high-tech, indigenous growth industry that reduces carbon emissions and is environmentally positive. In addition, it has a series of advantages over the conventional mineral diesel fuels. For example, it is a clean-burning alternative to mineral diesel fuel and is produced from renewable sources. It is non-toxic and biodegradable. Unlike the stuff that is currently pouring into the Gulf of Mexico, it will disappear relatively quickly and easily. It dissolves in water faster than sugar.

I mentioned its impact on engine parts, which is another aspect we need to examine. I have a very old car and am delighted with it. I deprecate the idea of disposability and built-in or planned obsolescence so that things degrade by design. Nowadays, television sets and washing machines last for about three or four years because the parts are designed to wear out. The new system means that items such as motor cars can be kept for longer. It is using an alternative fuel and requires no engine modification. Unlike some other alternative measures pertaining to electricity, which are also useful, one does not have to produce new cars or modify old ones. It can be used in existing vehicles. It does not affect engine performance and has greater lubricity than fossil diesel, so it prolongs engine life. Taking into account Senator O'Reilly's prudent hesitations, I am confident about this proposal. Now that we are on the cusp of passing this legislation, perhaps the Minister could indicate whether he feels confident that the indigenous industry will be able to satisfy the market and supply this new and exciting material to industry in the required quantities.