Bernard Durkan (Kildare North, Fine Gael)
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Question 215: To ask the Minister for Communications, Energy and Natural Resources the extent to which bio-fuel production has replaced imports; and if he will make a statement on the matter. [10669/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 224: To ask the Minister for Communications, Energy and Natural Resources the number of alternative fuel oil producers benefiting from incentives provided by to encourage alternative oil production; if all such beneficiaries are actually in production; if some producers are ready to proceed have had their applications for participation in Government incentives rejected while others approved have produced no product; and if he will make a statement on the matter. [10678/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 225: To ask the Minister for Communications, Energy and Natural Resources the number of biodiesel or other alternative fuel oil producers that have been accepted and approved by under schemes to promote alternative energy; if some parties that have benefited under these authorisations have produced no product whatsoever; the reason for this; if meanwhile other producers whose applications have been rejected are at production stage but excluded from benefit; his view on whether this is in accordance with good practice and best use of Exchequer based incentives; and if he will make a statement on the matter. [10679/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 215, 224 and 225 together.

The Biofuels Mineral Oil Tax Relief Schemes resulted in 18 projects being awarded excise relief between 2005 and 2010. Of these projects there are four in the biodiesel category, four in the bioethanol category, five in the pure plant oil category and five in the captive fleets category.

The schemes were designed as interim measures to enhance the level of biofuels in the fuel mix and to encourage the development of an indigenous biofuels industry. The Government's Bioenergy Action Plan which was published in 2007, made clear that a national biofuels obligation would replace the relief schemes by the time those schemes came to a close at the end of 2010. Proposals are being finalised for the introduction of the obligation scheme next year.

Since the start of the relief schemes there has been a steady increase in biofuels used in Ireland albeit from a very low base. Prior to the introduction of the schemes, market penetration of biofuels was almost non existent. In 2007, the latest year for which figures are available, market penetration had risen to 0.6%. Continued increase in penetration is anticipated in the 2008 statistics.

There have been at least five biofuels plants constructed or redeveloped on foot of excise relief granted under the schemes. A number of others are either at an advanced stage of planning, or have received planning permission. All but two of the projects are currently availing of the excise relief and my officials are in liaison with all project promoters on a regular basis in relation to progressing their projects.

It should be noted that the European biofuels industry generally, has experienced difficulties, with a prolonged period of price volatility culminating in recent negative trends which have seen the price of mineral diesel falling considerably. This has been exacerbated by rises in the price of feedstock for biofuels production. These two factors have caused severe competitive difficulties for the European and Irish biofuels sector. In addition, the availability of US subsidised biodiesel, known as "B99", has placed considerable commercial pressure on the European and Irish industry.

In this overall context, progress on constructing the production facilities benefiting under the Mineral Oil Tax Relief Scheme has been inevitably slow, despite some early successes.

The Department has been working closely with the Department of Enterprise, Trade and Employment to support official EU measures to counter the US export subsidy accorded to B99. An EU Commission response is expected this week which should bring relief for hard pressed European and Irish Producers. Both EU action, in the short term and the introduction of the Biofuels Obligation in 2010 should provide the Irish biofuels sector with the certainty it needs to invest and grow its business in a sustainable way.

The Biofuels Obligation will require fuel suppliers to provide a proportion of biofuels into the market. This will be calculated as a percentage of mineral oil sales. It will also ensure, through the full application of EU sustainability criteria, that biofuels in the Irish market are sustainably sourced. Evolving technologies will also enable the penetration rate to be increased without impacts on food crops and prices. Ireland has fully supported the introduction of EU sustainability criteria in the interests of the environment worldwide and in developing countries in particular. They will also underpin further investment in indigenous biofuel production, and critical investment in second and third generation biofuels technology.