Written answers

Wednesday, 19 September 2018

Department of Communications, Climate Action and Environment

Alternative Energy Projects

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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116. To ask the Minister for Communications, Climate Action and Environment if funding is available to private actors seeking to install CNG refilling stations on their premises either for company or private company use. [37977/18]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The work of the Low Emission Vehicle Taskforce, co-chaired by my Department and the Department of Transport, Tourism and Sport, involves examining how best to support the development of alternative transport fuels including compressed natural gas. The first phase of the Taskforce's work, which focused on electric vehicles, is currently nearing completion. The second phase, which will commence this month, will look at other alternative fuels including compressed natural gas. This will include the examination of what supports are needed to incentivise investment in compressed natural gas refuelling infrastructure.

In July I launched the first Call for Applications for the Climate Action Fund. This is one of the four funds established under the National Development Plan 2018-2027 as part of Project Ireland 2040. It will provide at least €500 million to support initiatives that contribute to the achievement of Ireland's climate and energy targets over the next decade. Alternative fuels infrastructure projects, such as compressed natural gas refuelling infrastructure, are eligible to apply.  Further information can be found on my Department’s website.

In addition, Gas Networks Ireland are currently developing 14 publicly accessible compressed natural gas refilling stations. The first of these, at Dublin Port, is due to open later this year.

Although there are currently no specific supports for the installation of compressed natural gas refuelling infrastructure, there is a commitment set out in the National Policy Framework for Alternative Fuels Infrastructure in Ireland 2017-2030 to introduce a new accelerated capital allowance tax incentive for companies.

The aim of this incentive is to encourage investment in refuelling infrastructure and equipment for compressed natural gas. Such an incentive would allow companies to write off 100% of the purchase value of qualifying vehicles and refuelling equipment, including compressed natural gas compression refuelling infrastructure, against their profit in the year of purchase.

As the Deputy is aware, taxation matters ultimately fall under the remit of the Minister of Finance, who must assess the merit of proposed new incentives and consider the need to balance the investment of public resources and monies with the effective contribution towards achieving our decarbonisation objectives.

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