Bernard Durkan (Kildare North, Fine Gael)
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Question 271: To ask the Minister for Communications, Marine and Natural Resources his views in respect of the development of renewable road or home heating fuels; and if he will make a statement on the matter. [28144/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 276: To ask the Minister for Communications, Marine and Natural Resources the extent of his recently announced proposals regarding alternative fuels to meet industrial and domestic requirements in the future; and if he will make a statement on the matter. [28149/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 287: To ask the Minister for Communications, Marine and Natural Resources, on the basis of progress to date, what are achievable targets in respect of alternatively produced energy; the likely impact in respect of road fuels, home heating or the industrial market; and if he will make a statement on the matter. [28164/05]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 271, 276 and 287 together.

My Department is responsible for the promotion and development of renewable energy, including biofuels. I am committed to the development and promotion of a biofuels and bio-energy sector in Ireland's transport, domestic and industrial fuel markets, which will contribute to emissions reductions and overall security of supply.

In 2004, my Department secured an amendment to the Finance Act 1999, which provides for the introduction of a scheme for mineral oil tax relief for biofuels. A scheme under the Act was agreed between my Department and the Department of Finance and was launched in April 2005. The proposals were evaluated by my Department and Sustainable Energy Ireland, SEI, and recommendations were made to the Minister for Finance. As a result, eight projects were awarded excise relief under the scheme, including four pure plant oil, three biodiesel or other biofuel, and one bioethanol proposal. Excise relief of €6 million will be allowed for these projects over a two-year period to 2007. It is anticipated that this will result in 16 million litres of biofuels being placed on the Irish transport market during that period. The scheme is an initial measure designed to stimulate market development.

Under SEI's renewable energy research, development and demonstration, RERD&D, programme, capital grant aid is also available for biofuels market demonstration projects in the pure plant oil, biodiesel and bioethanol categories. Funding of almost €250,000 has already been awarded to support engine modifications in up to 100 vehicles and provide plant and monitoring equipment.

In addition, SEI has provided grant aid of €40,000 to Teagasc for a study to establish oil quality testing procedures for pure plant oil. This study will be critical to building market confidence. SEI has also provided funding for the publication of a resource study on recovered vegetable oil and animal fats and a study on quality assurance for rapeseed oil as a vehicle fuel.

An interdepartmental biofuels group was established in 2004 to consider policy options for the development of the biofuels market and to consider these options from the perspectives of the sectors or interests represented by each Department. It comprises representatives from my Department, the Departments of the Environment, Heritage and Local Government, Finance, Transport, Agriculture and Food and SEI. As part of its work, the group commissioned a liquid biofuels strategy study for Ireland, which was published by SEI in December 2004. The report examines the full range of options and potential supports for liquid biofuels development in Ireland, including bioethanol and biodiesel.

The number of applications in the pilot scheme clearly indicates the strong interest there is in developing a biofuels industry. I have been in contact with the Minister for Finance about the possible scope for scaling up fiscal support for biofuels. Further measures to increase market penetration over a longer timeframe are also being considered in consultation with all the relevant Departments.

In addition to the ongoing developments in respect of liquid biofuels, in December 2003, my Department established a bio-energy strategy group to make recommendations on policy options for the development of bio-energy in Ireland. The group comprised representatives of my Department, SEI, the Department of Agriculture and Food, the Department of the Environment, Heritage and Local Government, COFORD, Teagasc, and industry representatives. In parallel with this development, my Department launched a consultation process on options for renewable energy support and established a renewable energy development group, REDG. The findings of the bio-energy strategy group are being considered by the REDG in the context of overall policy recommendations.

SEI has supported a number of biomass facilities to date and the biomass sector has attracted the largest amount of support under SEI's renewable energy research, development and demonstration, RERD&D, programme. Among the specific projects addressed to date are funding of €732,000 towards a combined heat and power system, using sawmill residues at Grainger sawmill in Cork. The plant is designed to generate both 1.83 MW electrical energy and 3.5 MW of thermal energy in a single process. Funding of €91,626 has been made towards a 100 kW capacity wood chip-wood pellet biomass boiler at the headquarters of the State forestry company, Coillte. Coillte recently relocated its corporate headquarters to a 100% sustainable, timber-constructed building. The cost and installation of the boiler, including automatic fuel supply auger, amounted to €27,500.

The remaining support from SEI is provided for the solar heating system, monitoring programme and the energy centre. The solar and wood heating systems are located in a purpose-built energy centre that is open to the public. Funding of €40,000 has been made towards the provision of a 500 kW wood boiler and solar panels at Inchydoney Lodge and Spa Hotel in Clonakilty, County Cork. Funding of €18,000 has been made towards the provision of a 100 kW wood chip boiler at Camphill Community, Jerpoint, County Kilkenny.

In addition to the RERD&D programme, SEI's house of tomorrow programme has committed over €7.5 million funding covering 39 projects and a total of 1,818 housing units. The scheme encourages housing developers to incorporate design and technology packages for high standard energy and CO2 performance. The range of technologies in these packages included wood pellet boilers that have been installed in 93 homes.

The SEI renewable energy information office also provides a free information service on wood heating. A free video-DVD on bio-energy, including wood heating and procurement guidelines for installers and others, is being made available as part of this initiative. SEI is also developing training courses for renewable energy installers, as part of a joint initiative with Action Renewables in Northern Ireland. The first of these courses, which will include training for the installation of biomass boilers, is scheduled to be available in 2006. The targets achievable for biofuel and bio-energy production and distribution in Ireland depend on a variety of factors including availability and end-use of agricultural land and the levels of indigenously sourced or imported feedstock or biofuels.