Vol. 536 No. 1
4 Mr. Stanton asked the Minister for Public Enterprise her views on the need to develop bio-fuels as an alternative energy source; the barriers which exist to prevent further development of such fuels; the action she is taking to facilitate the development of bio-fuels; and if she will make a statement on the matter. [13427/01]
Bio-fuel and bio-energy derived from crops has the attraction of being a renewable form of energy, and of having relatively benign emissions, low toxicity and biodegradability. However, while investigation of the use of bio-fuel and bio-energy technologies has been ongoing over many years, it is widely acknowledged that further research and development is required before the technologies are commercially exploitable in this country. In the case of such fuels for transport, for example, the principal barrier is economic, arising from the costs of growing, harvesting and processing the fuel.
The Green Paper on sustainable energy, which was published by me in September, 1999, calls for the investigation and testing of alternative fuels, new technologies and innovative systems. More recently, the national climate change strategy, published in October, 2000 by the Minister for the Environment and Local Government, Deputy Dempsey, has restated the call for measures to limit the rate of increase in overall fuel consumption and the need to encourage a switch to alternative, cleaner and more carbon efficient fuels.
I have secured funding of £146 million under the national development plan for energy related expenditure including more than £40 million for a programme of energy research and development. The funding, to be administered by the Irish Energy Centre, will be used to support activities in this area using a mixture of approaches including, a public good fully funded research programme in co-operation with universities and research institutions, a shared cost research and development programme to be carried out with industry to exploit commercial opportunities, and international collaborative research.
Development of alternative forms of energy such as bio-fuels and bio-energy will feature under one or more of these approaches. The Irish Energy Centre, which is co-funded by my Department, is currently preparing a three-year research and development work programme covering a number of sectors, with the objective of contributing towards the achievement of the most effective solutions to Irish needs at least cost. The programme will be funded as part of the economic and social infrastructure operational programme.
The successful development of these energy sources will require a degree of co-ordination between growers, processors and the fuel industry. They remain promising technologies in an Irish and wider context. However, until the high production cost of these alternative forms of energy are reduced they will continue to have a limited impact on the overall energy market.
Is the Minister of State aware that last winter there was a severe shortage of refined petroleum across Europe? In this context, it is important that Ireland develops alternative sources of energy. Does the Minister of State agree that from an environmental perspective it is desirable that we speed up the development of such alternative sources of petroleum and bio-fuel? Will he agree that a programme of three to five years is far too long and that we need to accelerate this? What plans has the Minister of State to do so?
I agree with the Deputy as to the urgency of developing renewable energy. The Government is working on that but is using tried, tested and proven technologies such as wind energy to produce electricity. The Deputy will know that we have trebled the target for renewable energy and we will have a further 500 megawatts of renewable, mostly wind, energy by 2005. Renewable sources will then produce more than 12% of our energy. Other renewable sources are being looked at and need to be looked at. The technologies have some way to go. Research and development must be carried out. The plans and the funding are in place for that research and development.
Is it not true that in countries such as Brazil this is already being done? The technology exists, but what is lacking is the political will. Is it not true that a sugar company recently investigated the manufacture of a bio-fuel, ethanol, but there was no encouragement from the Government to co-ordinate the plan properly? Last winter there was a danger that Ireland might run out of refined petroleum. The government's rush to sell the Whitegate refinery should be looked at very carefully given the lack of a bio-fuel alternative.
The main barrier is economic. There is also confusion about the environmental benefits of the fuels mentioned by Deputy Stanton. Although information is available about the use of the fuels and their performance compared to fossil fuels, there is little emphasis globally on the benefits of producing fuels from renewable sources. While engine manufacturers have acted as assessors of bio-diesel, there is still debate over the fuels' performance under certain conditions. Therefore, a common European standard is necessary to ensure public confidence and to ensure the thrust for what will hopefully be an effective source of renewable energy.
