Written answers

Tuesday, 21 November 2006

Department of Communications, Energy and Natural Resources

Alternative Energy Projects

9:00 am

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 82: To ask the Minister for Communications, Marine and Natural Resources the extent to which an evaluation has been carried out of the use of bio-diesel for domestic heating purposes; and if he will make a statement on the matter. [38809/06]

Photo of Liam TwomeyLiam Twomey (Wexford, Fine Gael)
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Question 86: To ask the Minister for Communications, Marine and Natural Resources the extent to which he has examined the various options available in terms of bio-fuels with particular reference to the growing of energy crops; the extent to which any one of the alternatives is most attractive in terms of meeting the requirements and cost effectiveness; and if he will make a statement on the matter. [38815/06]

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 121: To ask the Minister for Communications, Marine and Natural Resources the extent to which he has examined the merit of introducing further incentives to promote the production of energy crops as an alternative to the payment of fines for failure to comply with Kyoto; and if he will make a statement on the matter. [38816/06]

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
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Question 161: To ask the Minister for Communications, Marine and Natural Resources his preferred options in respect of the development of the alternative energy sector with particular reference to the need to generate adequate import substitution to assist in safeguarding security of supply and meeting the Kyoto principles; and if he will make a statement on the matter. [38814/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 82, 86, 121 and 161 together.

The development of an Irish biofuels market and the increased development and deployment of bio-energy resources in Ireland is a key priority. Biofuels and biomass strategies are critical components of the Government's energy policy objective to significantly enhance the contribution of renewable energy sources to the electricity, heat and transport sectors.

A range of initiatives are already in place to support the development of a biofuels sector. The biofuels excise relief scheme is creating significant opportunities for the development of pure plant oil, biodiesel and bioethanol processing facilities in Ireland and also provides economies of scale and commercial returns for processors. In that context, the technical feasibility for promoting usage in the domestic and commercial heating sector will be progressed as part of the strategy to optimise the potential of the bioenergy resources right across the spectrum.

The 2005 pilot mineral oil tax relief scheme for biofuels resulted in eight projects being awarded excise relief for a two year period under the scheme.

Building on the success of this scheme I launched the Biofuels Mineral Oil Tax Relief Scheme II, valued at over €200m, in July last. The excise relief scheme will enable us to reach the initial target of 2% market penetration of biofuels by 2008. The Green Paper proposes to double this to a target of 5.75% biofuel market share by 2010. The scheme will underpin the production and use of some 163 million litres of biofuels each year. Applications received under the scheme are currently being assessed and the results will be announced shortly.

One of the related aims of the new scheme is to send the necessary market signal to stimulate the development of biomass/feedstock production to support a sustainable domestic biofuels industry. There are considerable benefits to be accrued from a cohesive approach to bio energy and biofuels for both the demand and supply sides. The Government has made it clear that a fully cohesive approach by all relevant Departments and Agencies is key to delivering on the bioenergy agenda.

The Ministerial Bio Energy Task Force is overseeing the finalisation of the national bio-energy strategy which will set out the roadmap for bioenergy development and deployment. This strategy is taking account of EU developments, and the Energy Policy Green Paper consultation process.

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