Written answers

Thursday, 5 May 2005

Department of Communications, Energy and Natural Resources

Alternative Energy Projects

5:00 pm

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 61: To ask the Minister for Communications, Marine and Natural Resources if he has plans to make representations to the Government and Department of Finance in regard to measures to encourage the use of biomass fuelled heating systems; if he intends to publish a consultation or green paper on biomass energy; and if he will make a statement on the matter. [14391/05]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Question 64: To ask the Minister for Communications, Marine and Natural Resources the measures he intends to introduce to promote the use of wood chip and wood pellet solid fuel heating boilers and small scale wood fuel electricity generating systems; and if he will consider providing capital grants for such technology as in the UK. [14545/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 61 and 64 together.

My Department, in association with Sustainable Energy Ireland, SEI, set up a bioenergy strategy group, BSG, in December 2003. The primary objective of the group is to consider the 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 penetration of biomass energy in Ireland. Membership of the BSG comprised representatives of various Departments as well as State agencies in the agriculture and energy sectors and industry representatives.

Ireland has an excellent growing climate and an ongoing supply of raw material for wood fuel. Wood residues are already being used to produce heat for sawmills across the country and the wood energy market is poised for growth, with a number of commercial start-ups and a supply chain emerging. Wood residues can be broken down into four categories; pulpwood residues, sawmill residues, forest residues and recycled wood. The wood for energy sector divides into direct biomass — the trees themselves; indirect biomass — processing by-products and residues, and post-consumer recovered wood. There is good potential for the development of production of energy from biomass in Ireland.

I am aware that growth in the Irish forestry sector has created a strong supply of wood and wood residues into the coming decades, for which there is finite demand in existing markets. This represents a particular opportunity for bioenergy development based on wood products.

In tandem with the BSG, the Department launched a consultation process on future development of renewable energy generally in Ireland. Following on this consultation process, and to ensure future development of our renewable resources, including biomass resources, the renewable energy development group was established on 6 May 2004. The group is chaired by my Department and comprises relevant experts from the administrative, industry and scientific sector, including the Commission for Energy Regulation, CER, Sustainable Energy Ireland, SEI, ESB National Grid and the Economic and Social Research Institute, ESRI, amongst others.

The bioenergy strategy group is currently inputting into the renewable energy development group, which is at the end of its current work phase. The BSG findings will contain a road map for the development of biomass energy, including wood energy, with the identification of staged, achievable targets and recommendations for future action. The small scale wood energy market, whether fuelled by wood pellets or wood chips offers potential for growing bioenergy deployment in Ireland, and the BSG will be making specific recommendations in this regard. My Department is aware that the UK is providing capital grants for such technology. Such a scheme would have financial implications and would only be considered in a budgetary context.

The report of the renewable energy development group is expected shortly and will form the basis of my future policy decisions on the increased penetration of renewable energy technologies, including biomass, in the electricity market. On 7 April last I was able to announce the outline of a future support mechanism. This revised system will move away from competitive tendering to a fixed price proposal.

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