Pat Carey (Dublin North West, Fianna Fail)
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Question 253: To ask the Minister for Communications, Marine and Natural Resources the grants which are available to help promote the development of bio-fuels; and if he will make a statement on the matter. [16494/06]

Noel Dempsey (Meath, Fianna Fail)
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A number of initiatives are in place to support the development of a biofuels sector in Ireland. 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 Government Departments and agencies, I agreed with the Minister for Finance a further targeted package of excise relief valued at €205m, 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. I am also providing funding towards the capital cost of developing biofuels processing facilities, which will critically underpin the excise relief package.