Kathleen Lynch (Cork North Central, Labour)
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Question 12: To ask the Minister for Agriculture, Fisheries and Food if her attention has been drawn to the current proposals by Sustainable Industries Ireland to build a €200 million bio-refinery in County Carlow, and that it will convert agricultural products including beet, oats and wheat into bio-ethanol; if such a proposal would be eligible for grant approval; and if she will make a statement on the matter. [7095/08]

Pat Rabbitte (Dublin South West, Labour)
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Question 16: To ask the Minister for Agriculture, Fisheries and Food the reason in view of her public endorsement of plans for a bio-refinery in County Wexford, she did not support a similar proposal put forward by farmers in County Cork for a bio-fuel refinery on the grounds of the former sugar factory; and if she will make a statement on the matter. [7101/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 12 and 16 together.

I welcome any proposal to establish biofuel production facilities in Ireland, which would provide a new market outlet for Irish farmers to supply feedstock raw materials for conversion into biofuel. In this context, I did meet recently, at their request with the promoters of a bio-refinery project, which they intend to locate at a suitable site in the South East. I am not aware that the promoters of this project have sought grant assistance, but the availability of such funding is a matter in the first instance for the Department of Communications, Energy and Natural Resources which has overall responsibility for the development of bioenergy.

My Department's role is to support the production of feedstocks by providing incentives to farmers to grow energy crops. In this context in 2007, I introduced a new National Energy Premium of €80 per hectare and a new Bioenergy Scheme to help kick-start production of energy crops in Ireland. The €80 National payment supplements the EU Premium available under the EU Energy Crops. As a further support measure, land planted with energy crops can also benefit from the Single farm payment. The buoyant market for biofuels and the introduction of the incentives contributed to almost 8,000 hectares of energy crops being planted in 2007. These initiatives are intended to complement the measures introduced by the Department of Communications, Energy and Natural Resources to stimulate demand for biofuels, most particularly the €200 million excise relief scheme.

The question of the future use of the former sugar factory site at Mallow is a commercial matter for the owners, Greencore Group plc. Under the EU Restructuring Scheme for the sugar industry, Greencore submitted an aid application for restructuring aid in July 2006 under which they undertook to fully dismantle the Mallow factory and sought the maximum amount of restructuring aid. As the decision on whether to fully or partially dismantle the factory is solely a matter for the sugar processor and as the application met the requirements of the EU Regulations it was approved subject to the outcome of the Judicial Review proceedings instituted by Greencore.

Before the application for restructuring aid was received from Greencore I raised the possibility of using Mallow or Carlow for bioethanol production with the Company having regard to the provision under the restructuring scheme, the inclusion of sugar beet in the energy crops scheme and the extension of the excise relief scheme. The Company informed me that it did not intend to produce bioethanol in Mallow. Anybody who expressed an interest in the possibility of utilising these factories for bioethanol production was advised to pursue the matter with Greencore.