Liz McManus (Wicklow, Labour)
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Question 58: To ask the Minister for Agriculture and Food the discussions she has had with other Departments and State agencies with a view to meeting the EU biofuels directive requiring Ireland to replace 2% of petrol and diesel with renewable fuels by the end of 2005; and if she will make a statement on the matter. [14206/05]

Jim Glennon (Dublin North, Fianna Fail)
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Question 78: To ask the Minister for Agriculture and Food her plans to progress the bio-fuel sector here. [14141/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 58 and 78 together.

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 Limited 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 crops for energy purposes, and will therefore qualify to activate set-aside entitlements under the single payment scheme. I am having the energy crops scheme and a number of other areas such as wood biomass considered by my Department to determine how their bioenergy potential can be promoted.