Michelle Mulherin (Mayo, Fine Gael)
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To ask the Minister for Communications, Energy and Natural Resources if he will supply an update on plans to make the Belmullet wave test site, County Mayo, operational, including possible joint ventures involving private investment; the priority that he is giving to the project as part of the development of our indigenous wave energy resource and without which we continue to fall behind other countries in research and development and associated jobs in this up and coming energy area; and if he will make a statement on the matter. [9953/13]

Pat Rabbitte (Dublin South West, Labour)
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Wave and tidal energy is still at the RD&D stage globally. Ireland has a rich ocean resource and has significant potential in this area. In order to take forward the ocean energy strategy, an Ocean Energy Development Unit (OEDU) was established in the Sustainable Energy Authority of Ireland (SEAI) in 2009.

The OEDU has been taking forward the development of the sector through administration of a Prototype Development Fund of grants for industry. SEAI has also been progressing the development of a full scale grid connected wave test site near Belmullet off County Mayo, which would complement existing wave testing facilities i.e. the wave tank in Cork and the quarter scale wave testing site in Galway Bay.

The cumulative amount of expenditure on Ocean Energy in the period 2009 – 2013, including the estimated 2013 allocation, is €20.659m.

Ireland also has an opportunity to become a leader in ocean energy industries and technologies. Accordingly, other supports for the sector include the development of the Beaufort Laboratory as part of the IMERC facility in Cork. This will see a re-housing of the wave tank facility and will bring together researchers in the area currently based in the Hydraulics and Maritime Research Centre (HMRC) and the Coastal and Marine Research Centre (CMRC). The whole process is part of a broader campus approach with the Naval College, UCC and Cork Institute of Technology, aimed at maximising on marine industrial opportunities.

Research in the ocean energy area is ongoing in most universities across the country and ocean energy was recently identified as of 1 of 14 priority research areas by the Department of Jobs, Enterprise and Innovation in their Research Prioritisation Exercise.

The primary rationale for the Ocean Energy Programme, of which the Atlantic Marine Energy Test Site (AMETS) in Belmullet is but one component, is to develop and maximise the employment and wealth-generating industry activities that could potentially be associated with ocean energy as it evolves into a fully commercially viable sector. Various studies carried out to date have illustrated that there is considerable potential to create a range of long term jobs and viable indigenous industry.

Work is continuing in the development of the AMETS facilities off Belmullet and SEAI has been responsible for the co-ordination of the work programme. SEAI has applied to the Department of Environment for a foreshore lease in respect of the project and is the latter stages of the consenting process. Additionally a grid connection offer from ESB Networks has been accepted. A comprehensive data collection project to provide wave and seabed information for device developers is also underway.

The Government recognises the potential of our indigenous wave energy resource and the Research and Development and job potential in this area. In the context of overall reducing budgets, the capital allocation for the Ocean Energy Programme was increased to €5 million for 2013.

One of the priorities to be pursued is the further development of the Atlantic Marine Energy Test Site (AMETS). The potential for private sector involvement is being explored and the strategy as to how to bring this forward will be further considered.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources his assessment of the future for the biofuels sector here; and if he will make a statement on the matter. [10082/13]

Barry Cowen (Laois-Offaly, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources the extent to which he sees biofuels playing a role in renewable energy strategy; and if he will make a statement on the matter. [10077/13]

Robert Troy (Longford-Westmeath, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources his plans regarding the biofuels sector here; and if he will make a statement on the matter. [10073/13]

Pat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 108, 111 and 120 together.

The Biofuel Obligation Scheme was introduced in July 2010 as the primary means to meet the target of at least 10% renewable energy in transport by 2020, which was mandated by the 2009 Renewable Energy Directive. In preparing the National Renewable Energy Action Plan as required pursuant to the Directive, it was estimated that at least 8.4% of the energy in transport in Ireland in 2020 will come from the use of biofuels with the remainder achieved by the increased deployment of electric vehicles. In common with other Member States the uptake of electric vehicles is likely to be lower than originally anticipated in the context of 2020 and therefore biofuels will likely be required to play a more significant role in meeting the 10% target.

The Biofuel Obligation Scheme works by obligating large road transport fuel suppliers to bring a certain amount of sustainable biofuels to the market. The scheme was introduced with an obligation on fuel suppliers to include at least 4% by volume biofuels in their overall disposal of road transport fuels. In order to maintain progress towards achieving the 2020 targets, I increased the obligation to 6% by volume with effect from 1 January 2013. It should be noted that strict sustainability criteria must be met in respect of biofuels to be counted under the scheme and towards our renewable energy targets.

Recently, the European Commission circulated a proposal to amend sections of the Renewable Energy Directive. This proposal is currently being progressed and is one of the major agenda items for the Irish presidency of the EU. One of the amendments proposed is that no more than 5% of the energy in the transport sector should come from biofuels produced from certain crops. My Department is currently examining the proposal and its implications for meeting the target of 10% renewable energy by 2020. However, there are no implications for the current obligation rate of 6% as the overall energy content delivered by the obligation will not breach the proposed 5%. The obligation rate of 6% will remain the same until the end of 2014. Decisions on further increases after 2014 will be taken after any amendments to the Renewable Energy Directive have been finalised.

The Biofuel Obligation has successfully delivered increased amounts of biofuel in Ireland resulting in 145 million litres being placed on the Irish market in 2011. Of this, approximately 18.5 million litres was produced indigenously from waste material such as used cooking oil. Though figures for 2012 are not yet available, I understand that the amount of indigenous biofuel on the market increased last year. The recent increase in the obligation rate along with future increases will see the biofuel market grow to an estimated 500 million litres by 2020. This will continue to create opportunities for indigenous industry to produce biofuels here in Ireland.