Bernard Durkan (Kildare North, Fine Gael)
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Question 156: To ask the Minister for Communications, Marine and Natural Resources his plans to offer support or an incentive to encourage the production of alternative fuels with particular reference to the use of biodiesel, woodchip, solar energy and other eco-friendly fuels in conjunction with a fuel conservation policy with the objective of achieving a greater degree of economic independence through home production and a greater ability to comply with the Kyoto principles in line with the objectives already set by the Government; and if he will make a statement on the matter. [20297/05]

Noel Dempsey (Meath, Fianna Fail)
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My Department is responsible for the promotion and development of renewable energy including biofuels, biomass and solar energy and I am committed to the development of alternative fuels, which can contribute to emissions reductions, security of supply and contribute to meeting Ireland's commitments under the Kyoto Protocol.

Sustainable Energy Ireland, SEI, was established under the Sustainable Energy Act 2002 to promote and assist in the sustainable production, supply and use of energy, in support of Government policy. To date, SEI's research and development programme has committed €7 million on over 70 projects, which include biomass, biofuels and solar energy. Funding has also been made for wood pellet boilers and solar water heaters, under SEI's House of Tomorrow grant scheme.

My Department and SEI are evaluating applications under the recently advertised biofuels mineral oil tax relief scheme and recommendations will be made to the Department of Finance shortly. The scheme is an initial policy measure and further measures to increase market penetration are being considered.

In December 2003 my Department set up a Bioenergy Strategy Group, BSG, to make recommendations for action to increase the penetration of biomass energy in Ireland. The BSG findings are being inputted into the work of the renewable energy development group, whose report is expected shortly. This will form the basis of my future policy decisions on the increased penetration of renewable energy technologies, including biomass, in the electricity market.