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Dáil Éireann Debate, Thursday - 31 January 2013

Thursday, 31 January 2013

Questions (15, 17)

Charlie McConalogue

Question:

15. Deputy Charlie McConalogue asked the Minister for Communications, Energy and Natural Resources the measures he is putting in place to develop the biofuels sector here; and if he will make a statement on the matter. [4751/13]

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Brendan Smith

Question:

17. Deputy Brendan Smith asked the Minister for Communications, Energy and Natural Resources the extent to which he sees biofuels playing a role in renewable energy strategy; and if he will make a statement on the matter. [4762/13]

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Written answers

I propose to take Questions Nos. 15 and 17 together.

The Biofuel Obligation Scheme was introduced in July 2010 as the primary means to meet the target of at least 10% renewable energy in transport by 2020, which was mandated by the 2009 Renewable Energy Directive. It is estimated that at least 8.4% of the energy in transport in Ireland in 2020 will come from the use of biofuels with the remainder achieved by the increased deployment of electric vehicles. The Biofuel Obligation Scheme works by obligating large road transport fuel suppliers to bring a certain amount of biofuels to the market. The scheme was introduced with an obligation on fuel suppliers to include at least 4% by volume biofuels in their overall disposal of road transport fuels. In order to maintain progress towards achieving the 2020 targets, I increased the obligation to 6% by volume with effect from 1 January 2013.

Recently, the European Commission circulated a proposal to amend sections of the Renewable Energy Directive. This proposal is currently being progressed and is one of the major agenda items for the Irish presidency of the EU. One of the amendments proposed is that no more than 5% of the energy in the transport sector should come from biofuels produced from certain crops. My Department is currently examining the proposal and its implications for meeting the target of 10% renewable energy by 2020. However, there are no implications for the current obligation rate of 6% as the overall energy content delivered by the obligation will not breach the proposed 5%. The obligation rate of 6% will remain the same until the end of 2014. Decisions on further increases after 2014 will be taken after any amendments to the Renewable Energy Directive have been finalised.

The Biofuel Obligation has successfully delivered increased amounts of biofuel in Ireland resulting in 145 million litres being placed on the Irish market in 2011. Of this, approximately 18.5 million litres was produced indigenously from waste material such as used cooking oil. Though figures for 2012 are not yet available, I understand that the amount of indigenous biofuel on the market increased last year. The recent increase in the obligation rate along with future increases will see the biofuel market grow to an estimated 500 million litres by 2020. This will continue to create opportunities for indigenous industry to produce biofuels here in Ireland.

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