Erin McGreehan (Louth, Fianna Fail)
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111. To ask the Minister for Transport, Tourism and Sport for an update on his Department’s work on the Programme for Government commitments to support decarbonisation of road freight and commercial coaches, with fuels such as hydrotreated vegetable oil, hydrogen and biomethane. [30335/25]

Seán Canney (Galway East, Independent)
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As Minister of State for International & Road Transport, Logistics, Rail & Ports, I am committed to supporting the decarbonisation of road freight and commercial coaches.

While my Department’s policy, as detailed in Ireland’s Road Haulage Strategy 2022-2031 is for the Heavy Duty Vehicles (HDV) fleet to transition to zero emission technologies, interim solutions, such as biomethane/CNG and HVO, are being supported in the medium term. Government is committed to increasing the use of renewable fuels as a means to support emission reductions for diesel vehicles, which will remain a large majority in the national fleet until zero emission trucks become cost competitive with diesel engines. The CAP24 sets non-binding targets, to be achieved via the Renewable Transport Fuel Obligation on fuel suppliers, to reach at least a 20% sectoral share consumption of biodiesel (B20) by 2030 and a 10% bioethanol sectoral share consumption (E10) by 2030.

Further, biofuels are fully relieved from the carbon component of Mineral Oil Tax. This means that no carbon tax applies to biofuels, such as HVO or biomethane, used in any road vehicle, private or commercial. As annual increases in the carbon tax are implemented, the differential in tax costs between biofuels and fossil fuels will continue to widen, further incentivising the uptake of biofuels.

My Department is currently preparing a revised National Policy Framework on Alternative Fuels Infrastructure, as required under the EU’s Alternative Fuels Infrastructure Regulation (AFIR). AFIR mandates targets for EV recharging and hydrogen refuelling infrastructure for HDVs and my Department is working to identify and develop pathways to deliver the required infrastructure to support the transition to zero emission vehicles in the freight and coach sector

Funding and schemes are available for the sector to support the transition to Zero Emission operations. The Zero Emission Heavy-Duty Vehicle (‘ZEHDV’) Purchase Grant Scheme supports and promotes the decarbonisation of the heavy-duty sector to transition to Zero Emission vehicles. The Scheme supports the purchase of new large commercial vehicles by bridging some of the price difference between conventional heavy-duty vehicles and Zero Emission vehicles, which offer environmental benefits. The scheme has a budget of €3.5m in 2025. In November 2024, the scheme expanded to include grants for recharging infrastructure at depots, logistics hubs and urban nodes from early 2025. A new Fleet Assessment Audit, which launched in Q2 2025, will also be administered by SEAI, offering businesses an assessment by an independent energy advisor, who would provide guidance on the transition to zero emission vehicles.

In addition, the Accelerated Capital Allowance (‘ACA Scheme’) for Gas Vehicles and Refuelling Equipment and the Triple EEE ACA scheme are tax incentive schemes that promotes investment in Low emission HDVs. The ACA is based on the long-standing 'Wear and Tear Allowance' for investment in capital plant and machinery, whereby capital depreciation can be compensated through a reduction in an organisation's tax liability. This scheme allows operators to reduce their immediate tax bill against company profits when investing in zero emission vehicles through the Triple EEE for electric trucks and Hydrogen/Biomethane through the Gas Vehicle scheme.

My Department is actively collaborating with stakeholders in the hydrogen sector to develop an evidence base for the transition of HDVs to hydrogen fuelled vehicles. In relation to hydrogen infrastructure, my Department, in collaboration with the Department of the Taoiseach and the Department for the Economy in Northern Ireland, has completed two phases of a Shared Island Initiative to examine the safety and feasibility of hydrogen for the transport sector. Last month, my Department, in collaboration with the Department for Infrastructure in Northern Ireland, published a request for tender for Phase III of the project to develop a procurement strategy and preliminary business case to deliver two publicly accessible hydrogen refuelling stations along the Dublin – Belfast corridor, one in Ireland and one in Northern Ireland.

In relation to HVO, the availability of renewable transport fuels including HVO will remain constrained given current global production capacity, the need for sustainable feedstock and increasing demand from various sectors to use renewable fuels in their decarbonisation journey. The Department is finalising a detailed study on HVO use in the HGV sector to estimate how much HVO is currently used, likely future availability and price, decarbonisation potential and the feasibility of transitional incentives which would not delay the overall trajectory for transition to zero emission HGV fleets. The report is currently being reviewed by Department officials and I look forward to sharing the results of the study in the near future.