Simon Coveney (Cork South Central, Fine Gael)
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Question 520: To ask the Minister for Agriculture, Fisheries and Food the role of Coillte in afforestation and the production of biomass for energy; and if he will make a statement on the matter. [36700/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Coillte Teoranta was established as a private commercial company under the Forestry Act, 1988. One of the company's principal objects under the Act is to carry on the business of forestry and related activities on a commercial basis and in accordance with efficient silvicultural practices.

When it was first established in 1989 the company actively engaged in land acquisition for afforestation purposes and expansion of its estate. In latter years, it has reduced its land acquisition programme for a number of reasons, including reduced availability of land for sale, rising land prices and the company's ineligibility for forestry premiums. Since 2000, the company has focussed on contributing to the afforestation programme through its farm partnership schemes, by providing forestry services to farmers and by promoting forestry investment.

While much of Coillte's timber supply is destined for processing, the production of biomass for energy will still be significant for the company. The company is working with the key stakeholders in the market and, in particular, with the bio-energy group under the auspices of the Department of Communications, Energy and Natural Resources. In order to refine its business model and strategy for approaching the market, the company has established a pilot depot in Co. Mayo.

Coillte is also currently seeking to align itself with a leading technology company with demonstrable experience and a proven track record in the larger industrial biomass sector. Accordingly Coillte has sought expressions of interest from companies with experience in the biomass technology sector who wish to work with Coillte to develop a long-term sustainable biomass business.