Bernard Durkan (Kildare North, Fine Gael)
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Question 259: To ask the Minister for Communications, Energy and Natural Resources if he will further incentivise the growing of bio-fuel crops; and if he will make a statement on the matter. [18302/07]

Eamon Ryan (Dublin South, Green Party)
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The Bioenergy Action Plan for Ireland, which was published earlier this year, sets out a series of cross-Governmental and inter-agency actions to support the development and deployment of bioenergy in Ireland including measures aimed at encouraging farmers to grow energy crops. The Programme for Government underlines our commitment to maximise the potential of bioenergy crops.

The move to a biofuels obligation and our ambitious targets together, will create opportunities for the farming community to diversify into energy crops. I understand my colleague the Minister for Agriculture, Fisheries and Food who has responsibility for incentivising the production of energy crops already has incentives in place which are designed to encourage the growing of energy crops.

Bernard Durkan (Kildare North, Fine Gael)
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Question 260: To ask the Minister for Communications, Energy and Natural Resources if he will introduce new incentives to encourage bio-fuel production; and if he will make a statement on the matter. [18303/07]

Eamon Ryan (Dublin South, Green Party)
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The Programme for Government underlines our firm commitment to the development of an Irish biofuels industry and to the development and deployment of bio-energy generally in Ireland. A range of initiatives are 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. Building on the success of this scheme a further Biofuels Mineral Oil tax Relief Scheme II was introduced in 2006, valued at over €200 million. 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 re-alignment of VRT and Motor Tax to favour more energy efficient cars.

Under the Programme for Government we will introduce a Biofuels Obligation by 2009, which 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.

In tandem with these developments the Programme for Government commits to the introduction of a minimum requirement for the use of bio-fuels in State owned and public transport vehicles. Dublin Bus and Bus Eireann will move their existing fleet to a 5% biodiesel blend and will achieve a 30% biodiesel blend in their new buses.