Seán Sherlock (Cork East, Labour)
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Question 415: To ask the Minister for Communications, Energy and Natural Resources if incentives for the production of bio-fuels here will be put in place by him in view of the new legislation that will require bio-fuels to comprise 4% of all diesel and petrol sold here; and if he will make a statement on the matter. [41783/09]

Eamon Ryan (Dublin South, Green Party)
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The Mineral Oil Tax Relief (MOTR) Schemes, which were introduced by my Department in 2005 and 2006, have been instrumental in assisting many of the biofuel producers in Ireland to begin operations. The MOTR schemes, which will expire at the end of 2010, have been successful in leveraging a significant amount of biofuels into the Irish market.

With a view to developing a long term guaranteed market, the Biofuel Obligation will be introduced from next year. By establishing a substantial demand base for biofuels, commercial opportunities will open up for companies already producing biofuels in Ireland and for new players. There are a wide range of feedstocks available, which can be leveraged into biofuels production and companies are already producing biofuels in Ireland from a number of sources such as recovered cooking oil, whey, wheat, Oilseed Rape and tallow. The Obligation, by creating guaranteed demand will stimulate the supply of Irish sourced biofuels and will act therefore as an incentive for market production. No additional incentives are planned.