Written answers

Tuesday, 3 November 2015

Department of Communications, Energy and Natural Resources

Biofuel Obligation Scheme

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Renua Ireland)
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1124. To ask the Minister for Communications, Energy and Natural Resources for details of plans to make biofuel more readily available through fuel pumps in retail garages; and if he will make a statement on the matter. [37328/15]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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1126. To ask the Minister for Communications, Energy and Natural Resources if he will indicate the performance to date of the biofuels obligation scheme; how it is verified that 6.383% of motor fuels by volume is coming from renewable sources; the revenue generated by the biofuel levy in each year of its operation; if his Department will be undertaking a review of the effectiveness of the scheme in the future; and if he will make a statement on the matter. [37469/15]

Photo of Alex WhiteAlex White (Dublin South, Labour)
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I propose to take Questions Nos. 1124 and 1126 together.

The 2009 Renewable Energy Directive sets all Member States a binding target that at least 10% of the energy used in the transport sector must come from renewable sources by 2020. Ireland aims to meet this target mainly through the use of sustainable biofuels with electric vehicles also making a contribution.

In this regard, biofuels are readily available in Ireland and regulations on fuel standards, introduced by the Minister for the Environment, Community and Local Government in 2011, and which transpose the Fuel Quality Directive, permit the sale of petrol with up to 10% bioethanol, and diesel with up to 7% biodiesel. Currently, when petrol and diesel are purchased at the petrol pumps, they contain a certain amount of biofuel which has been blended into the petrol or diesel.

The Biofuels Obligation Scheme was introduced in July 2010 as the primary means through which Ireland would meet the transport target and is the principal support for the uptake of biofuels in Ireland. The scheme, administered by the National Oil Reserves Agency (NORA), is certificate based and, since January 2013, an obligated road transport fuel supplier, at the end of each calendar year, must hold six biofuel obligation certificates for every 94 litres (6.383%) of petroleum based fuel it has placed on the road transport market. Two certificates are awarded for each litre of biofuel produced from wastes, residues, non-food cellulosic material, and ligno-cellulosic material placed on the market with one certificate awarded per litre of other biofuels. Certificates are only issued for biofuels that have been demonstrated to have complied with the sustainability criteria of the Renewable Energy Directive.

The scheme has resulted in increases in the amount of biofuels in Ireland since its introduction. In 2014, almost 167 million litres of biofuel was placed on the road transport fuel market, which is an increase of over 16 million litres from the previous year. This represented 5.2 percentage points of the 10% target required by 2020.

It is estimated that in order to achieve the binding target for Ireland of 10%, a biofuel obligation rate of 12% by volume may be needed by 2020. Therefore, the obligation rate must be increased progressively and in a managed and phased basis over the coming years. Last month, I launched a consultation seeking views on an increase to the biofuel obligation rate from 2016. The consultation closed last Friday and my Department is considering the responses received.

The amounts collected by NORA for the Biofuel Levy, since its introduction in 2010, is contained in the following table:

YearLevy Collected
2010€1,970,321
2011€2,891,441
2012€2,493,159
2013€3,065,196
2014€3,328,554

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