Martin Ferris (Kerry North, Sinn Fein)
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Question 216: To ask the Minister for Communications, Marine and Natural Resources the figures for biodiesel production in Ireland since 2004; and if he will make a statement on the matter. [30179/06]

Martin Ferris (Kerry North, Sinn Fein)
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Question 217: To ask the Minister for Communications, Marine and Natural Resources in view of the 68 per cent increase in biodiesel production in the EU since 2004 if this State is lagging seriously behind; and if he will make a statement on the matter. [30180/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 216 and 217 together.

In 2004 there were 14,000 litres of biofuels produced in Ireland. This figure rose to over 1.3 million litres of biofuels being produced in 2005.

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 I launched the Biofuels Mineral Oil Tax Relief Scheme II, valued at over €200 million, in July 2006. 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.

Ireland, like many other EU Member States, is developing its biofuels sector from a low base. This is borne out by the fact that Member States combined reported a target of 1.4% for 2005, which is below the Directive's indicative target. The Commission has however, accepted Ireland's target of 2% by 2008.

I am firmly committed to the development of an Irish biofuels market and to the increased development of bio-energy generally in Ireland. To this end, I launched a Ministerial Bio Energy Task Force in July 2006. The primary objective of the Task Force is to draw up a cohesive national bio-energy strategy by the end of the year, which will set targets for deployment of bio-energy, identify priority areas for development and the necessary support measures to encourage supply and demand. This strategy will also take account of EU developments, and the views of key stakeholders under the Energy Green Paper consultation process.