Written answers

Thursday, 18 June 2009

Department of Communications, Energy and Natural Resources

Greenhouse Gas Emissions

6:00 am

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 12: To ask the Minister for Communications, Energy and Natural Resources his plans to ensure that the ministerial car fleet will use bio-fuels; when he expects same to happen; if he will ensure that the bio-fuels used in the State fleet are sustainable; and if he will make a statement on the matter. [24053/09]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 17: To ask the Minister for Communications, Energy and Natural Resources the bio-fuel targets to which he is operating; and if he will make a statement on the matter. [24181/09]

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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Question 46: To ask the Minister for Communications, Energy and Natural Resources the position regarding his commitment to the bio-fuels directive; the outcome of the public consultation process here; when this will be published; and if he will make a statement on the matter. [24085/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 48: To ask the Minister for Communications, Energy and Natural Resources the measures he has taken to incentivise import substitution by encouraging production of bio-fuels and bio-diesel through the manufacture of pure plant oil; the full extent of the production at present and expected on an annual basis in the future with particular reference to ensuring that all those currently capable of pure plant oil production are authorised to do so; the extent to which it estimated that oil importation can be reduced by such methods on an annual basis over the next five years; the consequent benefit to the Exchequer; and if he will make a statement on the matter. [24025/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Question Nos. 12, 17, 46 and 48 together.

Biofuels have a central role to play in the delivery of reductions in Greenhouse Gas emissions, as one of the few available and effective means of reducing emissions from transport.

Ireland must meet a challenging 10% renewable energy in transport target by 2020, under the terms of the Renewable Energy Directive. In that context, the development of a sustainable and robust biofuels supply is critical.

To date, the most important measures taken to incentivise the use of biofuels in Ireland have been the Biofuels Mineral Oil Tax Relief Schemes, which were introduced in 2005 and 2006 on the basis of competitive calls for proposals. The 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 5 are in the captive fleets category.

Individual amounts of biofuel produced by particular companies under the schemes is deemed to be commercially sensitive information. I can advise the Deputy that under the First Scheme, excise relief was awarded on 16m litres of biofuel with over 6.8m litres of biofuel being produced to date. Under the Second Scheme, excise relief was awarded on 665m litres of biofuel. Up to the end of December 2008 there has been over 100m litres of biofuel produced. My Department does not have details of the number of companies that did not receive excise relief under the schemes but which are nonetheless, currently producing biofuel. No specific licensing is required for biofuel production, and no authorisations are required from my Department in this regard.

Since the excise relief schemes were introduced there has been a steady increase in biofuels used in Ireland. Prior to the introduction of the schemes, in common with other Member States, market penetration of biofuels in Ireland was almost non existent. In 2007, penetration had risen to 0.6% and on the basis of the Mineral Oil Tax Relief (MOTR) figures alone, penetration had risen to at least 1.5% in 2008. On the basis of a 4% penetration rate, the imports of mineral fuels can be expected to fall by around 2.5%. However, given that biofuels are approximately the same price as mineral fuels, the impact on the Exchequer and the consumer will be minimal in direct financial terms. Increased indigenous biofuels production will have a positive impact on the Irish economy and security of energy supply and sustainability by displacing imported fossil fuels.

The schemes were designed as interim measures to accelerate the level of biofuels in the fuel mix, and were put in place in anticipation of the planned introduction of a Biofuels Obligation Scheme in 2010. A public consultation was undertaken in October 2008, on the parameters of the Biofuels Obligation. The proposal for a penetration rate of 4% by volume (equating to approximately 3.2% by energy), was generally welcomed in the submissions made. An increase in penetration rate to 6% in 2012, being dependent on the outcome of a review. My Department is currently finalising proposals for legislation, which I will be bringing to Government shortly, with a view to the introduction of the Obligation in 2010.

Ireland's Biofuels Obligation will integrate the EU Sustainability Criteria, which are currently being finalised. The objective is to ensure that all biofuels counted towards the national obligation are fully sustainable in line with EU requirements. While the Ministerial car fleet, including fuel provision, is the responsibility of the Department of Justice, the obligation will ensure that any biofuels used by the State fleets will meet the EU sustainability criteria.

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