Bernard Durkan (Kildare North, Fine Gael)
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Question 296: To ask the Minister for Communications, Energy and Natural Resources the extent of bio-fuel production in train throughout the country; the degree to which adequate processing and marketing facilities are in place; and if he will make a statement on the matter. [4204/10]

Eamon Ryan (Dublin South, Green Party)
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The production of biofuel in Ireland has been incentivised to date under the Mineral Oil Tax Relief Schemes, which have resulted in 18 projects being awarded excise relief on specified volumes of biofuel they produce. 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.

Prior to the introduction of the Excise Relief schemes in 2005, market penetration of biofuels in Ireland was almost non-existent. While a figure for market penetration for 2009 is not yet available, it is expected to be in excess of 2%. The steady growth in indigenous biofuel production is reflected in the fact that it represents over 50% of biofuel production to date.

The schemes were designed as an interim measure to increase the level of biofuels in the fuel mix and to encourage the development of an indigenous biofuels industry in advance of the introduction of the National Biofuel Obligation this year, which will underpin the development of the Irish biofuels market.

The National Obligation will also integrate the EU Commission's guidelines on Sustainability Criteria as soon as these are finalised. The trading of certificates under the Scheme, will also act as an incentive for Irish producers. For each litre of biofuel sold in the market a certificate will be issued by the National Oil Reserves Agency as the Administrator of the scheme. Certificates will also be subject to verification by sellers to demonstrate that they meet the sustainability criteria. Biofuel obligation certificates may be traded among registered operators which will enable small indigenous producers, in particular, to enter the market and develop their businesses.

Under the Obligation fuel suppliers will be compelled to include 4% biofuels in their overall annual fuel sales. The National Obligation will incentivise and enable the sustainable growth of the Irish biofuels market and support indigenous biofuel producers and ensure that they are given every opportunity to ramp up sustainable indigenous production of biofuels. The EU sustainability criteria will also provide some competitive advantage by ensuring that non-EU imports meet strict environmental guidelines.