Leo Varadkar (Dublin West, Fine Gael)
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Question 641: To ask the Minister for Communications, Energy and Natural Resources the incentives from his Department and his Department's agencies for the production of bio-fuels; if he will review these in view of the current world food crisis. [17741/08]

Eamon Ryan (Dublin South, Green Party)
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I am committed to ensuring that the development of the biofuels sector is fully sustainable. I will shortly be launching the public consultation on the proposed Biofuels Obligation in line with the Programme for Government and the Energy Policy Framework. The planned introduction of a Biofuels Obligation by 2009 would require all fuel suppliers to ensure that biofuels represent a certain percentage of their annual fuel sales. In that context, current EU policy developments in relation to ensuring the sustainability of biofuels production and utilisation will be fully factored in and publicly debated. The recent introduction by the UK of a Biofuels Obligation will also be closely monitored for lessons to be learned in the context of finalising our own proposals. The Biofuels Mineral Oil Tax Relief Schemes, which were introduced in 2005 and 2006, enables successful project promoters to produce a certain volume of biofuels on which they are exempt from paying mineral oil tax. The schemes have resulted in eighteen projects being awarded excise relief for the period 2005 to 2010 and are valued at over €200m.

My Department is also supporting research and development of Second Generation Biofuel production techniques under the Charles Parsons research awards. Work is also under way to determine what the marine environment might contribute to developing the national biofuels capacity. SEI in consultation with the Marine Institute is commissioning analysis of the potential of marine algae as a source of biofuels for Ireland. This will provide a comprehensive basis on which to inform future research and development into the potential use of marine algae for renewable energy. It will also provide data in relation to the biofuels capacity that could potentially be derived from the marine environment.