Written answers

Wednesday, 20 October 2010

Department of Communications, Energy and Natural Resources

Tax Code

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 249: To ask the Minister for Communications, Energy and Natural Resources the number of companies or individuals involved in production of ethanol or bio-diesel; the number of such companies not included in the Government's excise related incentive scheme; and if he will make a statement on the matter. [38057/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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My Department does not licence or control the production or importation of biofuel, and so does not maintain lists of operational production facilities.

The production of biofuel in Ireland was incentivised under the Mineral Oil Tax Relief Schemes, which resulted in 18 projects being awarded excise relief. 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, which was introduced in July of this year.

Of the companies receiving Mineral Oil Tax Relief (MOTR), there are currently four companies producing biodiesel from feedstocks such as Rapeseed, Tallow and Recovered Vegetable Oil (RVO) and one company producing bioethanol from cheese whey. There are also three companies claiming MOTR who are producing Pure Plant Oil (PPO) from rapeseed.

Biofuels will play an important role in meeting our binding EU target of 10% renewable energy in transport by 2020, and in so doing, reduce Greenhouse Gas emissions from Transport, improve energy security, and provide a valuable opportunity for the agricultural sector and for industry to diversify into new areas.

The National Biofuel Obligation Scheme which was introduced on 1 July establishes a clear framework to help underpin the ongoing development of an indigenous biofuels industry. The legislative basis for the obligation is provided for in the Energy (Biofuels Obligation and Miscellaneous Provisions) Act 2010. This legislation ensures that Irish consumers will have access to appropriately priced, sustainable and reliable sources of biofuel over the coming years, and, in doing so, gives an important incentive to domestic production.

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