Trevor Sargent (Dublin North, Green Party)
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Question 333: To ask the Minister for Agriculture and Food if she will act to make a reality the prospect outlined at the Teagasc national tillage conference in 2003 of Ireland supplying all its energy requirements from fuel crops; and if she will encourage the development of the biofuel sector for the sake of all farmers, especially those who depended on the Carlow sugar factory. [14481/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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Promotion and development of renewable energy in Ireland are matters in the first instance for the Minister for Communications, Marine and Natural Resources.

My Department is represented on the bioenergy strategy group established by the Department of Communications, Marine and Natural resources to consider policy options and support mechanisms available to Government to stimulate increased use of biomass for energy conversion and to make specific recommendations for action to increase the proportion of energy from biomass in Ireland.

In addition, an interdepartmental group chaired by the Department of Communications, Marine and Natural Resources is considering policy options for the development of a biofuels sector in Ireland. My Department is represented on that group. As part of the group's work, a liquid biofuels strategy study was published by Sustainable Energy Ireland, SEI, in December 2004. This report provides comprehensive details on the potential for the development of a biofuels market in Ireland and options to stimulate the market.

The possibility of producing bioethanol from sugar beet was mooted recently in the context of the closure of the Carlow sugar factory but Irish Sugar Ltd. has indicated that it intends to process the full Irish sugar quota at its Mallow plant, which will be upgraded. Arrangements are being made to transport the sugar beet from the Carlow catchment area to Mallow. Under the single payment scheme operated by my Department aid is available at a rate of €45 per hectare per year for areas sown with energy crops. The aid is granted in respect of areas where production is covered by a contract between the farmer and a processor, except in the case of processing undertaken by the farmer on his holding. Agricultural raw materials, with the exception of sugar beet, may be grown under the energy crops scheme provided the crops are intended primarily for use in the production of products considered to be biofuels and for electric and thermal energy produced from biomass.

A maximum guaranteed area of 1.5 million hectares for which aid for energy crops can be granted has been established in the European Union. According to figures provided by the EU Commission, in excess of 303,000 hectares was sown with energy crops in 2004, of which 439 hectares were Irish. From 1 January 2005, farmers may claim the energy crop payment in addition to their entitlement under the single farm payment. 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.

The energy crops scheme and a number of other areas such as wood biomass will be considered by my Department to determine how their bioenergy potential can be promoted.