The Biofuels Obligation Scheme, administered by the National Oil Reserves Agency, is the principal support for the uptake of biofuels in Ireland. The scheme was introduced in 2010 and requires suppliers of liquid road transport fuel to ensure that biofuels make up a certain percentage of annual fuel sales. It works on the basis of tradeable certificates with two certificates awarded per litre of sustainable biofuel if that biofuel is produced from wastes or residues and one certificate per litre for all other sustainable biofuels.
For each calendar year, a fuel supplier must hold sufficient biofuel obligation certificates to demonstrate compliance. Suppliers can meet their obligation either by placing sufficient amounts of biofuel on the market themselves, or by purchasing certificates from other suppliers with a surplus. The number of certificates required is determined by the biofuel obligation rate which, for 2019, is set at 10% by volume. This means that at the end of the year, a fuel supplier must hold ten biofuel certificates for every 90 litres of fossil fuel they place on the road transport fuel market this year.
Suppliers of gaseous transport fuels, such as compressed natural gas, are not currently subject to the above obligation. However, if a supplier was to place a renewable gaseous fuel, such as biomethane, on the road transport market, that supplier would be eligible to receive biofuel certificates for this fuel provided it meets the sustainability criteria set out in the scheme.
My Department plans to hold a public consultation on the Biofuels Obligation Scheme later this year which will provide the opportunity for stakeholders to input into the development of the scheme.
