Written answers

Tuesday, 30 May 2006

Department of Communications, Energy and Natural Resources

Alternative Energy Projects

8:00 pm

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Question 78: To ask the Minister for Communications, Marine and Natural Resources if his Department has carried out an analysis on the possible conversion of the former Mallow sugar factory to bio-ethanol production; and the Government support which would be available for fuels that could be derived from such a facility. [20775/06]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Question 80: To ask the Minister for Communications, Marine and Natural Resources if his Department has undertaken a feasibility study on the possibility of converting the recently closed sugar plants in Carlow and Mallow for biofuel production; and if he will make a statement on the matter. [20635/06]

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Question 92: To ask the Minister for Communications, Marine and Natural Resources if he intends to create further incentives to encourage all aspects of the alternative fuel industry with particular reference to the need to reduce this country's dependence on imported fuels such as oil, gas and coal; and if he will make a statement on the matter. [20732/06]

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 107: To ask the Minister for Communications, Marine and Natural Resources his views on the possible mandatory biofuel targets for EU Member States and on his Department's research plans for a possible bio-refinery for Ireland; and if he will make a statement on the matter. [20649/06]

Photo of Paul Connaughton  SnrPaul Connaughton Snr (Galway East, Fine Gael)
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Question 133: To ask the Minister for Communications, Marine and Natural Resources his intentions for the development of all aspects of the bio-fuel industry with particular reference to the need to ensure the ready availability of all forms of renewable energy in line with best practice throughout Europe; and if he will make a statement on the matter. [20729/06]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Question 135: To ask the Minister for Communications, Marine and Natural Resources if the imposition of biofuel support measures which require the sourcing of the raw materials for such fuels within the European Union would be in possible breach of World Trade Organisation regulations; and if he will make a statement on the matter. [18475/06]

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 142: To ask the Minister for Communications, Marine and Natural Resources if he has in mind proposals to develop the alternative energy sector with a view to a reduction in fossil fuel importation and a higher degree of compliance with the Kyoto principles; and if he will make a statement on the matter. [20738/06]

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 165: To ask the Minister for Communications, Marine and Natural Resources when he will bring forward his proposals to encourage the development of the biofuels sector; his views on whether the steep increase in the number of closures of petrol stations here and the decimation of the petrol station network will limit the availability of an accessible and affordable network of biofuels centres; and if he will make a statement on the matter. [20617/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 323: To ask the Minister for Communications, Marine and Natural Resources his intentions for the development of all aspects of the bio-fuel industry with particular reference to the need to ensure the ready availability of all forms of renewable energy in line with best practice throughout Europe; and if he will make a statement on the matter. [20807/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 327: To ask the Minister for Communications, Marine and Natural Resources if he intends to create further incentives to encourage all aspects of the alternative fuel industry with particular reference to the need to reduce this country's dependence on imported fuels such as oil, gas and coal; and if he will make a statement on the matter. [20811/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 333: To ask the Minister for Communications, Marine and Natural Resources if he has in mind proposals to develop the alternative energy sector with a view to a reduction in fossil fuel importation and a higher degree of compliance with the Kyoto principles; and if he will make a statement on the matter. [20818/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 78, 80, 92, 107, 133, 135, 142, 165, 323, 327 and 333 together.

Building on the success of the 2005 Mineral Oil Tax relief scheme which allows for 16m litres per annum of biofuels on the market, 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 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 scheme will achieve CO2 savings of 257,000 tonnes by 2010 and represents 52% of the annual CO2 reductions to be achieved through vehicle and fuel tax measures identified in the National Climate Change Strategy.

I expect to launch the Scheme in the coming weeks as soon as requisite State-Aid clearance has been processed. The Government is also be providing funding towards the capital cost of developing biofuels processing facilities, which will critically underpin the excise relief package.

One of the aims of the Biofuels mineral oil tax relief scheme is to mainstream the availability of biofuels within the existing fuel station supply network. Biofuels are not generally available through the network at present. I do not consider that current trends in the petrol station network, which is a commercial matter for the companies concerned, will adversely affect ambitions to progressively mainstream biofuels within the fuel supply system. In addition to the support programmes in place for current technologies, we will continue to support research and development in this area. The resulting biofuels and bio-products, while not yet at commercial stage, will have significant economic potential once fully developed.

My Department has not carried out a feasibility study on the possible conversion of the former sugar factories in Mallow or Carlow to biofuel production. The potential for using any existing facilities for the production of biofuels is ultimately a commercial decision for developers. The new biofuels excise relief programme, which is subject to State-aid approval, will provide a market framework in which potential developers can consider all options.

The sourcing of biofuels under the scheme is subject to the relevant World Trade Organisation rules. Within that context one of the aims of the new scheme is to stimulate the development of biomass/feedstock production in Ireland to support a sustainable domestic biofuels industry. There are considerable potential benefits to be accrued from a cohesive approach to bio energy and biofuels for both the demand and supply sides. The Government is committed to ensuring that all relevant Departments and Agencies deliver collectively to best effect.

The EU Commission will review the Biofuels Directive later this year and has launched a public consultation process. The consultation outlines a range of potential future policy options including mandatory targets. We are participating actively in the review of the Directive with a view to ensuring an outcome that reflects Ireland's specific objectives to accelerate development of biofuels as a strategic alternative. Biofuels policy is a critical component of overall energy policy objectives to significantly enhance the contribution of renewable energy sources to electricity, heat and transport.

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