Eamon Gilmore (Dún Laoghaire, Labour)
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Question 145: To ask the Minister for Communications, Marine and Natural Resources further to the recent plans in the UK for a biofuels obligation for all diesel and petrol providers his plans for a similar initiative here; and if he will make a statement on the matter. [34346/05]

Gerard Murphy (Cork North West, Fine Gael)
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Question 166: To ask the Minister for Communications, Marine and Natural Resources his plans to reduce the use of high emission fuels with a view to compliance with Kyoto targets; and if he will make a statement on the matter. [34486/05]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 169: To ask the Minister for Communications, Marine and Natural Resources the reason this country's development and production of alternative fuels has not kept pace with those throughout Europe which seem to have made rapid progress; and if he will make a statement on the matter. [34478/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 245: To ask the Minister for Communications, Marine and Natural Resources the reason this country's development and production of alternative fuels has not kept pace with those throughout Europe which seem to have made rapid progress; and if he will make a statement on the matter. [34649/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 252: To ask the Minister for Communications, Marine and Natural Resources his plans to reduce the use of high emission fuels with a view to compliance with Kyoto targets; and if he will make a statement on the matter. [34657/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 253: To ask the Minister for Communications, Marine and Natural Resources his plans to encourage the production and use of low emission fuels; and if he will make a statement on the matter. [34658/05]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 145, 166, 169, 245, 252 and 253 together.

The EC biofuels directive sets indicative targets of 2% market penetration for biofuels by end 2005. The targets in the directive are indicative and not mandatory. Ireland is starting from a very low current production base and the 2% target therefore represents a considerable challenge. Market penetration of biofuels is also low in many other EU member states. Only ten member states have identified targets of 2% or more for 2005. A further seven member states, including Ireland, have identified targets lower than 2% and the targets of the remaining eight member states are unclear.

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. In August 2005, eight projects were awarded excise relief under the biofuels mineral oil tax scheme, which was provided for in the 2004 Finance Act. 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 and I am in discussions with the Minister for Finance about the possibility for upscaling the scheme.

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. Funding has also been provided 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 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 in December 2004. The report is being considered as part of the overall policy objective to increase market penetration of biofuels in Ireland. The report suggests that excise relief is the most effective short-term measure to stimulate the market but that other policy initiatives, such as a renewables obligation, might be more beneficial in the longer term. A more detailed study on policy options for development of a biofuels market, including the possibility of a renewables obligation, has recently been commissioned. The study is being overseen by a steering group comprising all members of the interdepartmental biofuels group.

I will be following the UK developments closely but I am aware that any obligation in the UK may not commence until 2008. 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.

Olivia Mitchell (Dublin South, Fine Gael)
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Question 146: To ask the Minister for Communications, Marine and Natural Resources the current extent of energy production from biomass; his plans for expansion in the future in this area; and if he will make a statement on the matter. [34489/05]

Simon Coveney (Cork South Central, Fine Gael)
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Question 189: To ask the Minister for Communications, Marine and Natural Resources if biomass production here is in keeping with best practice elsewhere in Europe and worldwide; and if he will make a statement on the matter. [34488/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 254: To ask the Minister for Communications, Marine and Natural Resources if biomass production here is in keeping with best practice elsewhere in Europe and worldwide; and if he will make a statement on the matter. [34659/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 255: To ask the Minister for Communications, Marine and Natural Resources the current extent of energy production from biomass; his plans for expansion in the future in this area; and if he will make a statement on the matter. [34660/05]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 146, 189, 254 and 255 together.

Biomass energy offers potential for Ireland to develop indigenous energy supplies from renewable resources, thereby contributing to security of supply, lowering emissions and providing alternative sources of income for agriculture, forestry and waste management sectors. It also has the potential to provide a source of low cost energy across all sectors of the economy.

Ireland is still at a relatively low level of deployment of biomass energy, and in December 2003 my Department, in association with SEI, set up a bioenergy strategy group, BSG, to consider the policy options and support mechanisms available to Government to stimulate increased use of biomass for energy conversion. Membership of the BSG comprised representatives of various Departments as well as State agencies in the agriculture and energy sectors and industry representatives. The findings of the bioenergy strategy group are being considered by the renewable energy development group in the context of overall policy recommendations and will be considered carefully.

We are already making progress, particularly in integrating biomass into Ireland's heating infrastructures. The biomass sector has attracted the largest amount of support under Sustainable Energy Ireland's renewable energy research, development and demonstration programme. Among the specific projects addressed to date are: a combined heat and power system, using sawmill residues at Grainger Sawmill in Cork; a 100 KW wood chip and pellet boiler at Coillte's headquarters — this 100% sustainable, timber constructed building has incorporated solar and wood heating systems into a purpose built energy centre that is open to the public; a 500 KW wood boiler and solar panels at Inchadoney Lodge and Spa hotel in Clonakilty, County Cork; a 100 KW wood chip boiler at Camphill Community, Jerpoint, County Kilkenny.

SEI recently published details of a further funding programme in 2005 for biomass boilers. Funding for biomass energy has also been made available for a range of projects under the EU Leader, LIFE and INTERREG IIIA programmes.

The biomass technologies supported under the AER process include biomass — landfill gas, biomass-anaerobic digestion and biomass-combined heat and power and a total of 20.204 MW from biomass landfill gas projects has been commissioned to date. Three further biomass CHP projects, 26.8MW, and ten biomass AD projects, 2.022MW, were successful in AER V6. In April this year I announced that I was changing the renewable energy support mechanism from competitive tendering to a fixed feed in tariff mechanism. In September I announced the support prices for different technology bands, including general biomass price support.

The new fixed price tariffs are: large wind energy, over five megawatts — 5.7 cent per kilowatt hour; small wind energy, under five megawatts — 5.9 cent per kilowatt hour; biomass — landfill gas — 7.0 cent per kilowatt hour; hydro and other biomass technologies — 7.2 cent per kilowatt hour.

Nine other member states have chosen feed in tariff as the preferred mechanism to support biomass electricity, including those with the highest market penetration of biomass. The detailed draft terms and conditions of the proposed feed-in support programme were posted on the Department's website, www.dcmnr.gov.ie, in draft form, on 29 September last and interested parties had until 12 October 2005 to raise any queries or to furnish any observations on the proposals, as published.

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 and will seek to ensure that developers can make a reasonable rate of return on renewable energy projects while ensuring that the interests of national competitiveness and the ultimate burden of cost to the final consumer are all fully taken into consideration. In July my Northern counterpart, Angela Smith, MP, and myself published a preliminary consultation paper on an all-island vision for renewable energy to the year 2020 and beyond. The consultation period recently ended and the response has been very encouraging. The aim is to develop a long-term strategy for renewable energy on the island as a whole.