James Breen (Clare, Independent)
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Question 160: To ask the Minister for Communications, Marine and Natural Resources the steps he has taken in view of the fact that the cost of the fuel value of wheat and maize has risen dramatically, since the Bush initiative, to replace Ireland's dependence on petrochemicals by developing and processing the biorefining of lignocellulose feedstocks which would provide ample oil additives and platform chemicals and would have the knock on effect of increasing domestic employment; and if he will make a statement on the matter. [4081/07]

Noel Dempsey (Meath, Fianna Fail)
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My primary Ministerial responsibility in relation to biofuels is in the energy context and consequently in the production of biofuels to increase penetration in the transport sector. While I have no specific responsibility for the production of petrochemicals for industrial processes, I am aware that second-generation biomass conversion technologies could, over time, provide a suitable fuel and product for both sectors.

I am giving major priority to the accelerated development of Energy Research, Technology Development and Innovation to underpin energy policy goals including bioenergy development and deployment. The development this year of a comprehensive Energy Research Strategy 2008-2013 overseen by the Irish Energy Research Council will set out the overall priorities.

The recently announced Charles Parsons awards included funding for biomass-related research at four Universities on the island. Under this programme funding of almost €12 million is being provided to four Universities on the island of Ireland for the purposes of accelerating research in a number of energy related areas including biomass. This research will give us valuable information under Irish climatic conditions which will inform policy in relation to the optimisation of land use for biomass purposes.

Sustainable Energy Ireland (SEI) is also supporting research work in second generation technologies through, for example, grant aid to an Irish University which is involved in an EU FP6 project investigating Biomass-to-Liquid (BTL). In BTL, biomass is converted to synthesis gas through gasification and the synthesis gas can be subsequently transformed to liquid fuel.

The emphasis on the production of ethanol in the Biofuels Mineral Oil Tax Relief Scheme II supports the building of expertise in ethanol production in Ireland. This could have long term benefits for the production and blending of second generation biofuels which use similar but more complex technologies and processes. There were eleven applications received under the bioethanol category in the second MOT relief scheme and four of these were successful in being awarded excise relief up to 2010. This will allow for the production of 306m litres of bioethanol up to 2010.

As a contracting party to the International Energy Agency (IEA) Bioenergy Implementing Agreement, Ireland has signed up to participate in Task 39 which deals with developments in Liquid Biofuels, and particularly second-generation technology. Ireland has also signed up as an observer to the new IEA Bioenergy Implementing Agreement Task 42 which deals specifically with biorefineries. These international linkages position us well to monitor and benefit from international developments in this field and to identify appropriate applications for the Irish context.