Andrew Doyle (Wicklow, Fine Gael)
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Question 622: To ask the Minister for Agriculture, Fisheries and Food the percentage of agricultural land under cultivation for renewable resources for bio-fuel; the projected area for 2010; and the management strategy of her Department on the growing of bio-fuel crops. [11204/08]

Andrew Doyle (Wicklow, Fine Gael)
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Question 623: To ask the Minister for Agriculture, Fisheries and Food her policy on encouraging the use and production of all types of alternative energy on farms, including solar, thermal, bioenergy and wind; if she has made a commitment to implementing a national farm energy calculation system, similar to the systems in place in the US; and her policy towards grant aid for alternative energy production capital investment costs on farms. [11205/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 622 and 623 together.

The percentage of agricultural land under energy crops in 2007 was less than 0.02% comprising some 9,000 hectares. Overall the area sown with energy crops increased by roughly 3,000 hectares compared to 2006. It is not possible at this stage to forecast the likely area sown in 2010. The future outlook depends on a number of factors, not least profitability at farm level. Research undertaken by Teagasc indicates that the willingness of farmers to convert land to energy crops depends on a variety of circumstances including the efficiency and profitability of the farming enterprise and non-economic circumstances such as farm size etc. Existing specialist tillage farmers are more likely to consider energy crop production due to the similarities that exist between the production of cereals and energy crops in terms of machinery, soil type and agronomy skills.

In terms of strategy, my Department has participated on a number of interdepartmental committees led by the Department of Communications, Energy and Natural Resources on the development of Ireland's bioenergy resources. For example, my Department was represented on the Bioenergy Strategy Group, which was established to consider policy options and support mechanisms to encourage greater use of biomass for bioenergy. The Group published a report 'Bioenergy in Ireland' which made a number of recommendations to promote the bioenergy sector in Ireland.

In 2006, I participated in a Ministerial Taskforce, which agreed a National Bioenergy Action Plan to increase deployment of Ireland's bioenergy resources to 2020. In accordance with this plan, I subsequently launched a range of measures to stimulate production of energy crops. The measures include a new National Energy Crop Premium of €80 per hectare to supplement the EU premium available under the EU Energy Crops Scheme. I also launched a new Bioenergy Scheme providing establishment grants of up to €1,450 per hectare to farmers interested in planting willow and miscanthus. The second phase of the Scheme was launched in December 2007 and I have provided sufficient funding to support the planting of a further 1,600 hectares in 2008. Areas planted with energy crops can qualify for the Single Farm Payment.

My Department is also funding research projects that relate directly to biofuels and energy crops through the Department's Research Stimulus Fund Programme. Under the 2005 and 2006 calls for proposals, five projects received grant assistance of €1.5 million. I significantly increased the allocation under the 2007 Call for Proposals awarding some €5.3 million over the next four years to a further seven research projects. The research covers a broad range of agri-energy topics including energy crop production.

The development of Ireland's energy potential in relation to solar, thermal and wind is the responsibility of the Department of Communications, Energy and Natural Resources. Any proposal to introduce a national farm energy calculation system is also a matter for the Department of Communications, Energy and Natural Resources as they are the lead Department for the development and promotion of energy efficiency measures across all sectors of the economy including agriculture.

As regards aid for on-farm projects, my Department is supporting the development of anaerobic digestion facilities by providing grant aid to farmers for pilot projects under the Scheme of Investment Aid for Demonstration on Farm Waste Processing Facilities. Anaerobic Digestion is a proven technology that extracts energy in the form of biogas from organic waste. In 2007, ten projects were awarded grants under the Scheme. The maximum investment ceiling is €1 million per project and the applicable grant rate is 40%. The 2007-2013 Rural Development Programme provides for the continuation of a grant scheme for the development of such facilities.