Charlie McConalogue (Donegal, Fianna Fail)
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301. To ask the Minister for Agriculture, Food and the Marine the grant aid support available for producing industrial chemicals from beet; and if he will make a statement on the matter. [11055/17]

Michael Creed (Cork North West, Fine Gael)
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By way of explanation I would like to give the Deputy a short background to this issue. In 2011 the then Minister met with two separate groups which had conducted feasibility studies into the possibility of establishing a new sugar and bioethanol production facility, using sugar beet, in this country. The figures published by the interested groups who are investigating the possibility of building a new facility, indicate that the overall capital cost costs involved could range from €250million to €400million, depending on what type of facility will be constructed.

The Minister informed both groups at the time and many times since in the Dáil and through the media, that any venture to develop a combined sugar/bioethanol production facility in Ireland, would have to be a viable commercial proposition, and supported by a  sufficiently robust business case in order to attract the funding from investors for the very substantial capital investment required. Minister Coveney clearly informed both groups at the time that it was his job to look for agreement at EU level to allow for the growing of sugar beet for the manufacture of sugar, at the earliest possible date. In this connection, he secured agreement as part of the overall CAP reform package at the final EU Council of Agriculture Ministers, which he chaired in June 2013, to abolish all sugar quotas by 30 September 2017. This agreement removes, with effect from 1 October 2017, the current EU quota barrier for operators in Ireland or other Member State, wishing to re-establish a sugar industry.

At the time, this agreement was welcomed by those parties who are interested in seeking to re-establish a sugar industry here. It is now up to those same entities to move the project forward and to garner sufficient commercial and financial support to turn their plans into a viable reality.  The Programme for a Partnership Government makes clear that “State enterprise bodies will be asked to examine any substantial business plans related to rebuilding the industry with a view to considering appropriate State supports”.

Also there is also an EU funding opportunity under the that is relevant for the production of biobased materials including industrial chemicals from renewable biobased resources.  This is a €3.7 billion Public-Private Partnership between the EU and the Bio-based Industries Consortium. This competitive fund operates under Horizon 2020 and is driven by the vision and strategic innovation and research agenda (SIRA) developed by the .  This fund contains options for research and innovation, pilot and demonstration, coordination and support and Flagship/Facility actions.  This competitive funding option has to date funded over 35 projects including a for processing underutilised low value sugar beet pulp into value added products.  See for further details.  My Department promotes and supports participation in this competitive funding opportunity and would be happy to explain it further to any interested parties. I hope this explains the position.