My Department recognises the need to encourage the utilisation of farm waste as an alternative source of energy. I am cognisant of the role that a resource-efficient agriculture sector can play in supporting the use of 2nd and 3rd generation biofuels to contribute to renewable energy targets, especially where it can improve its competitiveness and promote job creation.
In 2006, my Department launched a Pilot Waste Processing Facilities Scheme with funding of €4 million in order to provide grant-aid for the installation of anaerobic digesters on ten Irish farms. To date, one applicant has been paid under the Scheme and I understand that a number of others have expressed interest in commencing on-farm projects. Funding extensions have been granted for that purpose.
Officials from my Department have contributed to the development of the draft Bioenergy Plan which was published by my colleague the Minister for -Communications, Energy and Natural Resources on 10 October this year. The Plan covers various strands of bioenergy with a view to maximising their potential contribution to achieving renewable energy targets for 2020 and beyond. It encourages the innovative use of animal by-products as a fuel to generate heat or electricity.
In recent years my Department, in collaboration with the Department of the Environment, Community and Local Government and the Environmental Protection Agency, has sought to encourage the use of animal by-products as “valuable by-products not waste”. The sustainable use of animal by-products can result in wider environmental and economic benefits. Anaerobic digestion plants which use animal by-products (ABP) as a feedstock are subject to processing and hygiene requirements as set out in EU ABP regulation. My Department has drawn up detailed conditions of approval for such plants following consultation with stakeholder representatives in the ABP Consultative Forum.
As a large ruminant livestock producer, it is notable that methane contributes a significant portion of agriculture greenhouse gas (GHG) emissions. While it is possible to produce and utilise methane through AD of stored manure, analysis to date would suggest that costs are a significant factor. The Teagasc Marginal Abatement Cost Curve for Irish Agriculture completed in 2012 covered the technical, financial and environmental effectiveness of various mitigation strategies for the sector. The report, which was completed in the light of detailed research, found AD to be one of the most expensive mitigation strategies.
In terms of overall EU policy, the Commission has proposed limiting the amount of food-based biofuels that can be counted towards the EU's target of reaching a 10% share of renewable energy in the transport sector by 2020. This limit will allow non-food based biofuels to make a greater contribution to meeting the 10% target. The proposal seeks to shift the focus away from first generation biofuels and encourage future investment in advanced biofuels such as municipal waste and agricultural residues that do not compete directly with food and feed crops.
The draft Bioenergy Plan provides for further analysis to be carried out on the costs and benefits of biogas and biomethane. This analysis will be critical in terms of identifying the energy sectors where they can be cost-effectively deployed.
