Jack Wall (Kildare South, Labour)
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Question 285: To ask the Minister for Communications, Marine and Natural Resources if any party expressed an interest in setting up and developing an ethanol business in south Kildare, in view of the recent problems experienced by the tillage farmers of that region; and if he will make a statement on the matter. [24747/06]

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 last 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 a target of 2% market penetration of 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.

Officials in my Department have met with several prospective biofuels developers, from a number of areas across the country. While I am not aware of any specific proposal for an ethanol facility in the south Kildare region, any emerging bioethanol, biodiesel or pure plant oil projects could potentially impact on tillage farmers across Ireland, including farmers in South Kildare.