Bernard Durkan (Kildare North, Fine Gael)
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Question 118: To ask the Minister for Communications, Energy and Natural Resources the extent to which he or his Department have an input directly or indirectly into the determination of companies eligible for excise relief involved in the production of bio-diesel or pure plant oil for bio-fuel purposes; if all such approved companies are meeting their production quotas; the reason that some such companies have not produced product to the full extent of quota; if such companies have not produced any product since excise relief was awarded; if any product suitable for bio-fuel purposes is being exported and re-imported; and if he will make a statement on the matter. [18722/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 377: To ask the Minister for Communications, Energy and Natural Resources the number of alternative oil and energy producers approved for excise relief under the programme to encourage the alternative energy sectors; the amount produced by each company so approved; the companies that have not produced any product; the number of companies that have been refused relief but which are currently in production; and if he will make a statement on the matter. [19003/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 378: To ask the Minister for Communications, Energy and Natural Resources the number of bio-diesel or other potential motor fuel producers currently approved for excise relief under the programme to encourage the alternative energy sector; the quantity for which this relief has been approved and utilised; and if he will make a statement on the matter. [19004/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 118, 377 and 378 together.

The Biofuels Mineral Oil Tax Relief Schemes were introduced in 2005 and 2006 on the basis of competitive calls for proposals. The scoring mechanism was published as part of the application form and accompanying documentation. There were specific limits on the amount of excise relief available under the various categories in each scheme and this was also stipulated in the relevant Guidance Notes. Assessment panels were established to review the applications received for both schemes and officials from my Department participated in the assessment process.

My Department made recommendations to the Minister for Finance in relation to those biofuels projects to be approved for excise relief. In all instances applicants were not awarded the full amount of MOT relief sought.

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

While individual amounts of biofuel produced by particular companies under the schemes is considered to be commercially sensitive information, I can advise the Deputy that under Scheme I excise relief was awarded on 16m litres of biofuel with over 6.8 m litres of biofuel being produced. Under Scheme II excise relief was awarded on 665m litres of biofuel and up to the end of December 2008 there has been over 108.2 m litres of biofuel produced. My Department does not have details of the number of companies who were not successful in being awarded excise relief under the schemes but who are currently producing biofuel.

The schemes were designed as interim measures to accelerate the level of biofuels in the fuel mix, in advance of the introduction of a biofuels obligation in 2010.

Since the excise relief schemes were introduced 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, penetration had risen to 0.6% and on the basis of the MOTR figures alone, penetration had risen to 1.5% in 2008.

It would not be appropriate for me to comment on the position of individual companies within the schemes or on their business practices. 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 Department liaises with all project promoters on a regular basis.

The European biofuels industry generally, has experienced profound difficulties over recent years. A prolonged period of price volatility culminated in a severe decline in mineral prices fundamentally affecting the competitiveness of biofuels. In addition, the availability of US subsidised biodiesel, known as "B99", also placed considerable commercial pressure on the European and Irish industry. This has been redressed by the countervailing action taken by the EU Commission last month.

It is highly likely that some of the biofuels exported from Ireland do re-enter the country in a blended state. This is a function of the fact that biofuels and the products used to make them are internationally traded commodities.

The introduction of the Biofuels Obligation in 2010 will provide the Irish biofuels sector with the certainty it needs to invest and grow in a sustainable way.