Written answers

Wednesday, 25 November 2009

Department of Communications, Energy and Natural Resources

Alternative Energy Projects

9:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Question 44: To ask the Minister for Communications, Energy and Natural Resources the measures he is planning to introduce to promote bio-fuel production domestically here in view of setting a bio-fuel content for petrol and diesel target of 4%. [43266/09]

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 92: To ask the Minister for Communications, Energy and Natural Resources if he is satisfied that all fuel supply companies will meet the new bio-fuels obligation of 4% of annual fuel sales from July 2010 as announced in November 2009; if his attention has been drawn to the current percentages in relation to fossil fuel and bio-fuel sales by fuel supply companies; the money made available in 2009 for capital grants for biomass and combined heat and power plants to the bio-fuel sector; the projected percentage take up of same in 2009; and if he will make a statement on the matter. [43373/09]

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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Question 93: To ask the Minister for Communications, Energy and Natural Resources his position on bio-fuels; the way he intends to ensure compliance for bio-fuels used here with the sustainability criteria proposed by the EU; the percentage of bio-fuels sold here which were imported; the countries from which they are imported; and if he will make a statement on the matter. [43338/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 44, 92 and 93 together.

As I advised the House earlier, the Government is committed to the sustainable development of an Irish biofuels market in line with EU biofuel requirements and policy developments. The introduction of the National Biofuel Obligation next year will underpin the development of the Irish biofuels market. The Obligation will also integrate the EU Commission's guidelines on Sustainability Criteria as soon as these are finalised. Under the Obligation fuel suppliers will be legally required to include 4% biofuels in their overall annual fuel sales. I am satisfied that this target will be delivered. The Obligation will in effect create a long-term market based framework for the progressive development of the Irish biofuels sector. As the Deputy is aware, prior to the introduction of the Excise Relief schemes in 2005, market penetration of biofuels in Ireland was almost non-existent. Penetration is set to exceed 2% in 2009. 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. Under the excise relief schemes there has been over 180 million litres of biofuel produced for the Irish market to date, of which 49% was imported from the United Kingdom, the Netherlands, Germany and South America. The steady growth in indigenous biofuel production is reflected in the fact that it represents 51% of biofuel production to date. The introduction of the Biofuel Obligation in 2010 will, through the creation of a guaranteed market demand, provide the Irish biofuels sector with the certainty it needs to underpin investment and sustainable growth. This will create economic activity across the regions. I can advise the Deputy that funding of over €5 million was provided under ReHeat and CHP programmes for 2009. It is the case that projects to date have come from the solid biomass sector as opposed to the liquid biofuel sector. Overall, I am satisfied that the National Obligation from next year, will incentivise and enable the sustainable growth of the Irish biofuels market and support indigenous biofuel producers. The EU sustainability criteria will also provide some competitive advantage by ensuring that non-EU imports meet strict environmental guidelines.

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