Bernard Durkan (Kildare North, Fine Gael)
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Question 461: To ask the Minister for Communications, Energy and Natural Resources the full extent to which bio ethanol and bio diesel have been supported by way tax or other incentivisations; and if he will make a statement on the matter. [36877/12]

Pat Rabbitte (Dublin South West, Labour)
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In 2005 and 2006, the Mineral Oil Tax Relief (MOTR) schemes, valued at over €200m in excise foregone, were introduced as an interim measure to incentivise the use of biofuels in Ireland. Prior to introduction of the schemes, market penetration of biofuels in Ireland was almost non existent. These schemes ended in 2010, with the introduction of the national Biofuel Obligation Scheme.

The Biofuel Obligation Scheme was introduced in July 2010 to underpin delivery of the mandatory EU target of 10% renewable energy in transport by 2020. The obligation currently requires that the amount of biofuel brought to the market is not less than 4.166% of the relevant disposal of petroleum road transport fuels. As a result in 2011, 145 million litres of biofuel was placed on the market. This obligation will increase over time and by 2020 it will require suppliers of road transport fuels to make certain that even higher volumes sold are biofuel. This will ultimately create a market size of approaching 500 million litres of biofuel.