Bernard Durkan (Kildare North, Fine Gael)
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Question 280: To ask the Minister for Communications, Energy and Natural Resources his plans to encourage the production of biodiesel or ethanol; and if he will make a statement on the matter. [43688/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 281: To ask the Minister for Communications, Energy and Natural Resources if it is logical to import bio-fuels while capacity for production is readily available within this jurisdiction; and if he will make a statement on the matter. [43689/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 282: To ask the Minister for Communications, Energy and Natural Resources if all bio-fuel producers here are in receipt of production incentives; and if he will make a statement on the matter. [43690/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Question Nos. 280 to 282, inclusive, together.

The Government is committed to the sustainable development of an Irish bio-fuels market in line with overall EU bio-fuel requirements and policy developments.

To date, the production of bio-fuel in Ireland has been incentivised under the Mineral Oil Tax Relief Schemes, which have resulted in 18 projects being awarded excise relief on specified volumes of bio-fuel they produce. The schemes were designed as an interim measure to increase the level of bio-fuels in the fuel mix and to encourage the development of an indigenous bio-fuels industry in advance of the introduction of the National Bio-fuel Obligation.

The introduction of the National Bio-fuel Obligation next year will underpin the development of the Irish bio-fuels 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 compelled to include 4% bio-fuels in their overall annual fuel sales. The Obligation will, through the creation of a guaranteed market demand, provide the Irish bio-fuels sector with the certainty it needs to underpin investment and sustainable growth. The National Obligation will incentivise and enable the sustainable growth of the Irish bio-fuels market and support indigenous bio-fuel producers. The EU sustainability criteria will also provide some competitive advantage by ensuring that non-EU imports meet strict environmental guidelines.

Increased indigenous bio-fuels production will have a positive impact on the Irish economy and security of energy supply and sustainability by displacing both imported fossil fuels and imported bio-fuels. However, as the Deputy will be aware, increased production in Ireland will not happen overnight and a certain degree of imports will be required to meet the obligation, but the National Obligation will ensure that Irish producers are given every opportunity to ramp up indigenous production.