Dáil Éireann Debate, Tuesday - 25 April 2023
173. Deputy Darren O'Rourke asked the Minister for Transport if his attention has been drawn to a report (details supplied) regarding State support for port infrastructure; if he has considered the report; and if he will make a statement on the matter. [19011/23]
View answer174. Deputy Darren O'Rourke asked the Minister for Transport what funding structures have been considered for the development of ORE port facilities; and if Connecting Europe Facility funding can still be considered the main mechanism for funding port infrastructure supporting ORE. [19012/23]
View answer175. Deputy Darren O'Rourke asked the Minister for Transport if a strategic investment model for the construction of ORE ports has been considered; and if he will make a statement on the matter. [19013/23]
View answerpropose to take Questions Nos. 173 to 175, inclusive, together.
Offshore Renewable Energy (ORE) is integral to achieving Ireland’s Climate Change ambitions with a target of achieving 7GW of offshore energy by 2030 of which 2GW will be dedicated solely to producing green hydrogen. Irish ports will play a critical part in achieving this ambition.
The Department of Transport acknowledges the report sent by Wind Energy Ireland in relation to port funding and the consideration given to various funding mechanisms within that report. Under National Ports Policy our state commercial ports operate as independent commercial bodies and does not provide for direct exchequer funding. This policy has proven very effective in developing a highly competitive and responsive ports sector, where ports have continually proven to be agile in responding to market needs and opportunities. This policy extends to any strategic investment model for the construction of port infrastructure where direct exchequer funding is proposed.
The Irish ports involved in advancing ORE infrastructural projects are at various stages of development. A number of ports are already working with their financial advisors to construct the detailed businesses cases that will determine their investment requirements and how best these requirements can be met. It is only when their respective business cases are completed that a determination of the commercial viability of these projects can be made and any potential financing requirements identified.
EU funding of port infrastructure for ORE is and remains available for ports, or terminals within ports, on the Trans European Network for Transport (TEN-T). Ports on the TEN-T network are eligible to apply for Connecting Europe Facility (CEF) funding towards their infrastructure developments, with the potential for up to 50% of eligible costs for studies and up to 30% of infrastructure works costs. This remains one potential source of funding, among many. The latest CEF call for funding closed on 18 January 2023 with the results expected in June 2023.
The need to maximise financing opportunities for ports is recognised. To that end, the Department of Transport continues to engage with all industry stakeholders. This includes potential financing partners such as the EU (via Connecting Europe Facility), Ireland Strategic Investment Fund (ISIF) and the European Investment Bank (EIB) – looking at viable projects, capable of generating a commercial return.
The Department of Transport has also engaged the services of NewERA to progress an analysis on the ‘Facilitation of Offshore Renewable Energy (ORE) by Commercial Ports’ and to explore the availability of financing mechanisms to support the delivery of port projects. As part of this analysis, NewERA will be assessing Irish ports’ ORE development plans and capacity to fund these plans.
