Written answers

Wednesday, 12 October 2005

Department of Communications, Energy and Natural Resources

Alternative Energy Projects

9:00 pm

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
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Question 109: To ask the Minister for Communications, Marine and Natural Resources his plans to encourage the development of alternative fuels and the extent to which he expects this to meet compliance with Kyoto principles; and if he will make a statement on the matter. [28055/05]

Gay Mitchell (Dublin South Central, Fine Gael)
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Question 110: To ask the Minister for Communications, Marine and Natural Resources the extent and cost of his proposed tax relief for alternative fuel production; and if he will make a statement on the matter. [28053/05]

Photo of Bernard AllenBernard Allen (Cork North Central, Fine Gael)
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Question 147: To ask the Minister for Communications, Marine and Natural Resources his projections in respect of the maximum achievable target in terms of biofuel production; and if he will make a statement on the matter. [28007/05]

Photo of Dan NevilleDan Neville (Limerick West, Fine Gael)
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Question 163: To ask the Minister for Communications, Marine and Natural Resources his plans to offer research and development funding toward the development of alternative or renewable fuels; and if he will make a statement on the matter. [28021/05]

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
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Question 179: 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. [28022/05]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 185: To ask the Minister for Communications, Marine and Natural Resources his plans to expand alternative fuel production; and if he will make a statement on the matter. [28063/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 244: To ask the Minister for Communications, Marine and Natural Resources his plans to expand alternative fuel production; and if he will make a statement on the matter. [28116/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 252: To ask the Minister for Communications, Marine and Natural Resources his plans to encourage the development of alternative fuels and the extent to which he expects this to meet compliance with Kyoto principles; and if he will make a statement on the matter. [28124/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 253: To ask the Minister for Communications, Marine and Natural Resources the extent and cost of his proposed tax relief for alternative fuel production; and if he will make a statement on the matter. [28126/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 277: To ask the Minister for Communications, Marine and Natural Resources his plans to offer research and development funding toward the development of alternative or renewable fuels; and if he will make a statement on the matter. [28150/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 278: To ask the Minister for Communications, Marine and Natural Resources the degree to which alternative or renewable fuels will replace current fuel imports; and if he will make a statement on the matter. [28151/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 286: To ask the Minister for Communications, Marine and Natural Resources his projections in respect of the maximum achievable target in terms of biofuel production; and if he will make a statement on the matter. [28163/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 109, 110, 147, 163, 179, 185, 244, 252, 253, 277, 278 and 286 together.

My Department is responsible for the promotion and development of renewable energy including biofuels and I am committed to the development and promotion of a biofuels sector in Ireland's transport fuel market, 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. A total of 34 applications were received under the call for proposals by the closing date. The proposals were evaluated by my Department and Sustainable Energy Ireland, SEI, and recommendations were made to the Minister for Finance, and eight projects were awarded excise relief under the scheme. Of the eight projects, four were pure plant oil, three were biodiesel or other biofuel, and one was bioethanol. 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 replacing imports 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, 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 of 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 also provided funding for the publication of a resource study on recovered vegetable oil and animal fats and 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 interest represented by each Department. It comprises representatives from my Department, the Departments of Environment, Heritage and Local Government, Finance, Transport and 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 targets achievable for biofuel 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.

The national climate change strategy sets out the strategies and targets for meeting Ireland's Kyoto commitments. Implementation of transport initiatives in the national climate change strategy is a matter for my colleague, the Minister for Transport. My colleague, the Minister for the Environment, Heritage and Local Government, has lead responsibility for Government policy on meeting Ireland's target under the Kyoto Protocol. I understand that work on a review of the national climate change strategy, taking account of developments since its publication at the end of 2000, is currently in progress in his Department.

The number of applications in the pilot scheme clearly indicates the strong interest there is in developing a biofuels industry in Ireland. I have had 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.

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