Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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32. To ask the Minister for Communications, Energy and Natural Resources what the scope of bioenergy Ireland will be; and if he will make a statement on the matter. [31645/14]

Alex White (Dublin South, Labour)
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On June 24th last, the Government approved the streamlining and refocusing of the commercial operations of Bord na Móna and Coillte, primarily in the bio energy and wind energy sectors.

The decision will see the establishment of a Joint Venture (JV) between the two companies, with subsidiaries or SPVs (Special Purpose Vehicles) as necessary, to focus on the identified areas of greatest synergy, which include a Biomass business, to be called BioEnergy Ireland, which would procure biomass at market rates from both Coillte and private sources and use this to supply the entire market (including Coillte’s board companies and Bord na Móna’s power station) on a competitive, commercial basis.

Additional areas of focus for the JV are a wind business comprising initially of two Coillte wind farms, a shared services approach to consolidate central support services and drive cost efficiencies, and Recreation and Tourism.

This JV approach has the potential to capture many of the efficiency gains and policy benefits of a full merger, while avoiding some of the short-term costs and risks associated with a merger strategy. The Government has agreed that overall responsibility for implementing the decision is to be given to the Minister for Communications, Energy and Natural Resources.

The Government has also recently agreed the national Bioenergy Plan. Bioenergy will be an essential element in contributing to Ireland’s future energy needs. It has the potential to provide significant economic and environmental benefits. Our available resource – derived from forests, energy crops, animal by-products, and waste – can rapidly increase through policies and actions across energy, forestry, agriculture, waste, and research, development and deployment. The Bioenergy Plan will provide a mechanism to inform and coordinate policy and implementation across these policy areas and includes a role for Bioenergy Ireland in optimising the supply of biomass.