Eamon Gilmore (Dún Laoghaire, Labour)
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Question 37: To ask the Minister for Agriculture, Fisheries and Food if he acknowledges that the use of bio-energy provides an opportunity to reduce greenhouse gas emissions originating from both the energy and the agricultural sectors; his views on whether Ireland is in a unique position possessing a large agricultural area relative to its population size of just over 4.2 million people; if he acknowledges that miscanthus has much to offer in this Irish context, being a renewable source of energy; and if he will make a statement on the matter. [21972/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The bio-energy market is an important segment of the renewable energy sector. Important and challenging EU and National targets now exist to develop renewable energy in response to concerns about climate change and energy security. Two key policy documents have been published in Ireland to increase renewable energy output. The White Paper on Energy "Delivering a Sustainable Energy Future for Ireland" sets out the framework for energy policy to 2020 to ensure security of supply, environmental sustainability and economic competitiveness in the energy sector. A 'National Bioenergy Action Plan' is also in place to increase deployment of Ireland's Bioenergy resources in the transport, heat and electricity markets.

Bio-energy crops can make a contribution to emissions reduction in the agriculture sector through the provision of low or carbon neutral indigenous fuels. Both willow and miscanthus are carbon neutral fuels as the carbon dioxide released on combustion is equal to that taken from the atmosphere by the plant during its lifetime. My Department has been providing support to farmers through a Bio Energy Scheme since 2007. A pilot Bio Energy Scheme was launched in 2007 to support the planting of miscanthus and willow by giving farmers a grant to cover 50% of establishment costs. Grants were paid in two instalments: 75% following establishment of the crop and 25% in the year after establishment. The pilot Scheme supported 364 farmers in the planting of some 2,500 hectares (2,100 miscanthus and 360 willow) to the end of 2009 at a cost of some €2.9 million.

A new Bioenergy Scheme, co-funded by the EU under the Rural Development Programme, was launched in February 2010 to build on the progress made during the pilot phase. Under this Scheme farmers receive a grant up to a maximum of €1,300 per hectare to cover 50% establishment costs. It is expected that up to a further 700 hectares will be planted (320 miscanthus and 370 willow) in 2010 under the Scheme.

Ireland's climatic and soil conditions are very suitable for both miscanthus and willow production and offer a new rural economic activity and entry for agriculture to a large expanding energy market. These crops can also deliver positive outcomes in terms of reduced carbon dioxide emissions and potentially deliver extra sources of income for rural communities. A vibrant non-food crops industry here would certainly provide farmers with added income streams. Given a favourable environment for development, Irish farmers can make a substantial contribution towards meeting Government targets and policies in the bioenergy and non-food crop sector.