Tony Gregory (Dublin Central, Independent)
Link to this: Individually | In context

Question 175: To ask the Minister for Communications, Marine and Natural Resources the action that is being taken to achieve the objective set out in the EU biofuels directive requiring Ireland to replace 2% of petrol and diesel with renewable fuels by the end of 2005 and to increase this to 5.75% by 2010; if bioethanol from sugar beet is being considered as a viable alternative; and if he will make a statement on the matter. [5750/05]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

My Department is responsible for the promotion and development of renewable energy including biofuels and I am committed to the development and promotion of a biofuels market in Ireland's transport fuel sector. The targets set in the biofuels directive for market penetration of biofuels are indicative and not mandatory and present a challenge to Ireland given the low base from which we are starting. An interdepartmental group has been established, chaired by my Department and comprising officials from Sustainable Energy Ireland, SEI, and the Departments of the Environment, Heritage and Local Government, Transport, Agriculture and Food, and Finance. The group is considering policy options for the development of a biofuels sector in Ireland. As part of the work of this group, a liquid biofuels strategy study was published by SEI in December which examines the full range of options and potential supports for liquid biofuels development in Ireland, including bioethanol and biodiesel. The report is being considered as part of the overall policy objective to increase market penetration of biofuels in Ireland, which is at a very low level.

In March 2004, my Department secured an amendment to the Finance Act 1999, which provides for the introduction of a scheme for excise tax relief for biofuels. The purpose of the scheme is to allow qualified and conditional relief from excise of biofuel used in approved pilot projects for either the production of biofuel or the testing of the technical viability of biofuel for use as a motor fuel. It is envisaged that the scheme will encompass market development for pure plant oil, biodiesel and bioethanol. The European Commission has confirmed that the scheme would represent a state aid and consequently its approval is required. In this regard the Department of Finance has written to the Commission seeking approval. Once the necessary clearance is granted, a commencement order will be signed by the Department of Finance and the process for project selection and approval will be implemented.

Sustainable Energy Ireland is also funding a number of biomass projects and studies through its renewable energy research development and demonstration, RERDD, programme. Under the programme, Sustainable Energy Ireland offers capital grant aid for biofuels market demonstration projects in the pure plant oil, biodiesel and bioethanol categories.