James Bannon (Longford-Westmeath, Fine Gael)
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Question 784: To ask the Minister for Communications, Energy and Natural Resources his plans to promote the growth of bio-fuels in view of the fact that only 3% of Ireland's primary energy supply comes from renewable sources; and if he will make a statement on the matter. [16998/07]

Eamon Ryan (Dublin South, Green Party)
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The Programme for Government underlines our commitment to the development of an Irish biofuels market and to the development and deployment of bio-energy generally in Ireland. A range of initiatives is already in place to support the development of the biofuels sector.

The 2005 pilot mineral oil tax relief scheme for biofuels has resulted in eight projects being awarded excise relief for a two-year period under the scheme. The Biofuels Mineral Oil tax Relief Scheme II was introduced in 2006, valued at over €200m. Under this scheme sixteen projects have been awarded excise relief to the period 2010. The scheme will enable us to reach an initial target of over 2% market penetration of biofuels by 2008. As a result of this scheme, biofuels are already being mainstreamed in blends of up to 5% at a number of existing petrol and diesel pumps, and higher blends are being sold to identified vehicle fleets. The Government has also introduced a 50% VRT relief on Flexible Fuel Vehicles, which are capable of running on blends of up to 85% ethanol in petrol. These vehicles are now available in Ireland from a number of car manufacturers. The National Climate Change Strategy also commits to a realignment of VRT and Motor Tax to favour more energy efficient cars. The planned introduction of a Biofuels Obligation by 2009, will require all fuel suppliers to ensure that biofuels represent a certain percentage of their annual fuel sales.

Grants for the conversion of diesel engine vehicles to use Pure Plant Oil (PPO) have been made available by Sustainable Energy Ireland (SEI), working with the four companies who were granted excise relief under the PPO category in the Pilot Biofuels Mineral Oil Tax Relief Scheme. The Department of Transport is also funding specific biofuels initiatives and will publish a Sustainable Transport Action Plan later in 2007.

Under the Programme for Government we will introduce a minimum requirement for the use of Biofuels in State-owned and public transport vehicles. We will introduce biofuels in blends of up to 5% in existing Local Authority and CIE fleets and will achieve 30% in new vehicle purchases by CIE.