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Energy Resources.

Dáil Éireann Debate, Tuesday - 30 November 2004

Tuesday, 30 November 2004

Questions (98, 99, 100, 101, 102, 103)

Ciarán Cuffe

Question:

135 Mr. Cuffe asked the Minister for Communications, Marine and Natural Resources if he has asked for research to be carried out on the potential production of ethanol from existing industrial facilities such as sugar processing plants; and the supports which might be required to encourage private industry to switch to such processing methods. [31238/04]

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Martin Ferris

Question:

242 Mr. Ferris asked the Minister for Communications, Marine and Natural Resources if the report on the biofuels directive commissioned by Sustainable Energy Ireland has been published. [31286/04]

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Martin Ferris

Question:

243 Mr. Ferris asked the Minister for Communications, Marine and Natural Resources his Department’s strategy to attain a 20% substitution of conventional fuels by biofuels and other alternatives in the road transport sector by 2020. [31363/04]

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Martin Ferris

Question:

244 Mr. Ferris asked the Minister for Communications, Marine and Natural Resources the proportion of fuel sold here for transportation that consists of biofuels and other renewable fuels. [31364/04]

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Martin Ferris

Question:

245 Mr. Ferris asked the Minister for Communications, Marine and Natural Resources if this State submitted a report to the European Commission in 2004 on the promotion of biofuels and other renewable fuels within the transport sector; and if so, if that report can be made available to Dáil Éireann. [31365/04]

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Bernard J. Durkan

Question:

284 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the extent to which biofuel development has progressed; and if he will make a statement on the matter. [31520/04]

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Written answers

I propose to take Questions Nos. 135, 242 to 245, inclusive, and 284 together.

My Department is responsible for the promotion and development of renewable energy including biofuels and I am committed to the development of an integrated strategy to increase market penetration of biofuels in Ireland. An interdepartmental group has been set up, chaired by my Department and comprising officials from Sustainable Energy Ireland, SEI, the Departments of Environment, Heritage and Local Government, Transport, Agriculture and Food and Finance, and it is considering policy options for the development of a biofuels sector in Ireland with a view to increasing the penetration of biofuels in the transport fuel market. A liquid biofuels strategy study has also been commissioned by SEI to examine the full range of options and potential supports for liquid biofuels development in Ireland. The report will include options for the production of bioethanol, biodiesel and pure plant oil and will be published shortly.

Discussions have taken place between SEI and the sugar producing industry to explore the potential for bioethanol production. Meetings have also been held with other organisations who are looking at the production of bioethanol from feedstocks other than sugar beet and with organisations interested in the production of biodiesel and pure plant oil. I understand from SEI that these contacts are continuing.

SEI's research development and demonstration programme offers capital grant aid for biofuels market demonstration projects in several categories including bioethanol, biodiesel and pure plant oil.

In March 2004, my Department secured an amendment to the Finance Act 1999, which provides for the introduction of a scheme for excise tax relief for biofuels. The purpose of the scheme is to allow qualified and conditional relief from excise of biofuel used in approved pilot projects for either the production of biofuel or the testing of the technical viability of biofuel for use as a motor fuel.

My Department has finalised details of the scheme with the Department of Finance. The European Commission has confirmed that the scheme would represent a state aid and, consequently, its approval is required. In this regard the Department of Finance has recently written to the Commission seeking approval.

From May 2003 to May 2004 18,000 litres of rapeseed oil was sold and used as fuel in Ireland. The European Commission Green Paper, towards a European strategy for the security of energy supply, sets an objective of 20% substitution of conventional fuels by alternative fuels in the road transport sector by the year 2020. The EU Biofuels Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport sets indicative targets for market penetration of biofuels to 2010 and my Department's focus at this point, is to promote the development of a biofuels sector in Ireland, in accordance with the directive. A report has been prepared for submission to the Commission and will be made publicly available shortly.

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