Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 389: To ask the Minister for Communications, Marine and Natural Resources his views on direct grant aid to meet capital start-up costs for bioenergy producer groups, as is the case in other EU states; and if he will make a statement on the matter. [10945/05]

Noel Dempsey (Meath, Fianna Fail)
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The only capital grant support is that provided by Sustainable Energy Ireland through its renewable energy research, development and demonstration programme. It is open to a wide range of research, development, and demonstration projects under the support mechanism categories proposed in the Green Paper on sustainable energy, including shared cost demonstration — projects demonstrating particular renewable energy technologies or applications which although at or near commercial viability and having potential for replication, currently face market barriers due to lack of expertise, knowledge or market confidence; shared cost research and development — research and development into innovative technologies, systems or marketing approaches which support the commercial exploitation of renewable energies; commissioned public good activities — activities directed at increasing the value and impact of the programme results, which will ultimately be used to inform policy. To date the programme has committed approximately €7 million in grant support, with bioenergy accounting for the majority of the spending.

I am advised by my colleague, the Minister for Agriculture and Food, that her Department introduced an energy crops scheme in March 2004 in accordance with the provisions of Council Regulation (EC) No. 1782/2003. Under this scheme, aid of €45 per hectare is granted for areas sown under energy crops and used for the production of products considered biofuels and electric and thermal energy produced from biomass. Any agricultural raw material, with the exception of sugar beet, may be grown under the energy crops scheme. From 1 January 2005, farmers may claim the energy crop payment in addition to their entitlement under the single farm payment scheme. In addition to this scheme, set-aside land can be used for a variety of non-food uses, including growing of crops for energy purposes, and will therefore qualify to activate set-aside entitlements under the single payment scheme.