Trevor Sargent (Dublin North, Green Party)
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Question 132: To ask the Minister for Agriculture and Food the progress and opportunities in place or planned for farmers and all involved in developing the biofuel and biomass sector in view of the serious increases in oil prices and concerns over the long term security of oil supplies; and if she will make a statement on the matter. [26468/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Minister for Communications, Marine and Natural Resources has overall responsibility for energy policy and is primarily responsible for the promotion and development of renewable energy, including biofuels. Nonetheless, the development of the biofuels industry is a cross-sectoral issue impinging on several policy areas, for example those related to environment and fiscal policy as well as energy policy, and involving several Departments and agencies. I am acutely aware of the central role which agriculture can play in the provision of necessary raw materials for the production of biofuels. These raw materials can include oilseed rape, wheat and sugar beet for liquid transport biofuels, forestry by-products for wood biomass, and other farming by-products such as meat and bone meal and tallow for energy-heat generation and biodiesel respectively.

Factors such as the increasing cost of oil, the need to reduce carbon dioxide emissions and the opportunity for farmers to explore alternative land uses following CAP reform mean that the potential of this area must be fully explored.

For the purposes of contributing to the development of policy on biofuels, my Department in conjunction with COFORD and Teagasc has examined the potential of energy crops, wood biomass and farming and food by-products. In general, the production of energy crops for biofuels will have to be demand led and production by farmers will only occur if the economic returns are greater than those offered by traditional crop enterprises. The production of liquid biofuels from energy crops is not economic at current oil price levels. However, the scheme recently announced by the Minister for Communications, Marine and Natural Resources for mineral oil tax relief on pilot biofuel projects has stimulated the production of oilseed rape for biofuel.

The exploitation of wood resources for energy purposes, mainly for heat or electricity generation, offers significant potential. There are also significant opportunities for using by-products of farming and food processing for bioenergy purposes. Approximately 140,000 tonnes of meat and bone meal is produced annually and its use in place of fossil fuels could reduce carbon dioxide emissions by up to 19%.

I am anxious to encourage further research to assist the development of the biofuels industry and I have arranged for research projects on biofuels and other non-food uses of crops to be included in the latest call under my Department's research stimulus programme.