Written answers

Thursday, 6 April 2006

Department of Communications, Energy and Natural Resources

Alternative Energy Projects

5:00 am

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Question 20: To ask the Minister for Communications, Marine and Natural Resources if he has had discussions with the Department of Agriculture and Food or farming, processing or other interested groups with a view to the utilisation of lands previously used for sugar beet growing for biofuel crop production; and if he will make a statement on the matter. [13795/06]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Question 100: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to proposals or reports emanating from the sugar beet industry in the matter of the conversion of facilities from food production to biofuel production; and if he will make a statement on the matter. [13794/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 214: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to proposals or reports emanating from the sugar beet industry in the matter of the conversion of facilities from food production to biofuel production; and if he will make a statement on the matter. [13889/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 215: To ask the Minister for Communications, Marine and Natural Resources if he has had discussions with the Department of Agriculture and Food or farming, processing or other interested groups with a view to the utilisation of lands previously used for sugar beet growing for bio-fuel crop production; and if he will make a statement on the matter. [13890/06]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Question 232: To ask the Minister for Communications, Marine and Natural Resources the role his Department will play in assisting to kick-start the renewable energy sector by establishing plants to produce ethanol from sugar beet due to the closure of both Mallow and Carlow sugar factories. [13967/06]

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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I propose to take Questions Nos 20, 100, 214, 215 and 232 together.

An interdepartmental biofuels group was established in 2004 to ensure close co-operation and communication between the relevant players on biofuels and biomass development and related policy initiatives. The group comprises representatives of the Department, the Departments of Agriculture and Food, the Environment, Heritage and Local Government, Finance and Transport and Sustainable Energy Ireland, SEI. The Minister has asked the Department to give particular priority to maintaining and enhancing a fully holistic approach across Departments to progressing the biofuels-bioenergy agenda and addressing supply and demand challenges and opportunities in a strategically planned way.

The 2005 pilot mineral oil tax relief scheme for biofuels has resulted in eight projects being awarded excise relief and will result in 16 million litres of biofuels being placed on the Irish transport market by next year. Building on the success of this scheme and following extensive discussions with industry and relevant Departments and agencies, the Minister agreed with the Minister for Finance a further targeted package of excise relief valued at €205 million, which was announced in the budget. The new excise relief programme, which is subject to State-aid approval, will be rolled out from this year to 2010 and will enable us to reach the initial target of 2% market penetration by biofuels by 2008. When fully operational the relief is expected to support the use and production of some 163 million litres of biofuels each year. The Minister is also providing funding towards the capital cost of developing biofuels processing facilities, which will critically underpin the excise relief package.

The potential for using existing facilities for the production of biofuels and switching to the production of energy crops is ultimately a commercial decision for developers and farmers. The new excise relief programme will provide a framework in which farmers and potential developers can consider all such options. The Minister will continue to work closely with his colleague, the Minister for Agriculture and Food, in ensuring an integrated approach to bioenergy issues.

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