Liz McManus (Wicklow, Labour)
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Question 53: To ask the Minister for Agriculture, Fisheries and Food the reason no funding has been approved for the biomass programme in view of the ambitious EU and national targets for heat, electricity and transport fuels which are to be met in the future; and if she will make a statement on the matter. [30091/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The promotion and development of renewable energy in Ireland, including bioenergy, are matters in the first instance for the Minister for Communications, Energy and Natural Resources. The role of the Department of Agriculture and Food is to support the supply side of the bioenergy market by encouraging the production of feedstocks. In relation to funding, €14 million was made available in Budget 2007 for measures to support energy crop production. A further €1.2 million was made available for a new Wood Biomass Harvesting Scheme. In March of this year, the Department of Communications, Energy and Natural Resources published a National Bioenergy Action Plan to develop Ireland's bioenergy resources to 2020. The Action Plan, which is a comprehensive strategy to increase deployment of Ireland's resources in the transport, heat and electricity markets, is being implemented by a number of Departments and State Agencies. My Department is implementing certain measures, which I will outline, to increase the share of bioenergy derived from the Agriculture and Forestry sector.

In February 2007, I launched a new Bioenergy Scheme to provide establishment grants to farmers interested in planting willow and miscanthus for bioenergy (heat and electricity) purposes. These crops can be pelleted and used in domestic and commercial biomass boilers to generate heat and electricity. Establishment grants are payments to cover part of the costs of establishing the crop. Aid is being provided at a rate of 50% of establishment costs, subject to a maximum of €1,450 per hectare. Some €8 million has been allocated to this Scheme over the period 2007-09.

The EU Energy Crops Scheme was introduced in 2003 as part of the mid-term review of the Common Agriculture Policy. The Scheme provides farmers with an EU premium of €45 per hectare to grow energy crops intended primarily for use in the production of bioenergy. The €45 Premium is payable on a maximum guaranteed area of 2 million hectares per annum across EU Member States. When this threshold is breached, the Premium is reduced proportionately.

Farmers who are eligible for the €45 EU Premium can also qualify for a new National Energy Crop Premium, which is worth €80 per hectare. It is intended that the €80 payment will apply for three years and will be subject to a maximum ceiling per producer over the three years. The current maximum area per producer over the three-year period is 37.5 hectares. My Department is pursuing EU approval to increase this hectarage ceiling. In Budget 2007, €6 million was made available for this measure up to 2009.

My Department is supporting research into bioenergy projects through the Research Stimulus Fund Programme. The Programme facilitates research that supports sustainable and competitive agricultural production practices and polices and contributes to a scientific research capability in the agriculture sector. Under the 2005 and 2006 calls for proposals, five projects were selected that relate directly to biofuels and energy crops and received total grant assistance of €1.5 million. Under the 2007 call for proposal, some €4 million is being made available over the next four years for research on the farming aspects of bio-energy production.

My Department in co-operation with COFORD and Teagasc supports the development of the wood energy sector through a range of measures aimed at creating an effective supply chain from producer to end users. Support includes 100% grants and attractive premiums for up to 20 years to encourage the establishment of new forests on agricultural land. The value of the premium for farmers can be as much as €574 per hectare, per annum, depending on the species planted. An additional payment of up to €200 per hectare per annum, on top of the normal forestry premium, is available for five years for farmers who are in REPS and who establish high nature value forestry under the new Forest Environment Protection Scheme.

Funding is also available for individual projects and initiatives which focus specifically on wood energy. Examples include the Clare Wood Energy Farm Forestry project and the Forest Link project in Donegal. In addition, the Wood Biomass Harvesting Machinery Grant Scheme provides up to 40% grant aid towards the purchase of wood chippers. My Department has already made offers of funding to the value of €600,000 under Phase 1 of this Scheme and a further €600,000 is available in grant assistance under Phase II launched in the past fortnight. The estimated energy output from the woodchip produced by these machines would be enough to heat the equivalent of around 400 hotels.