Dáil Éireann Debate, Tuesday - 20 June 2023
219. Deputy Alan Dillon asked the Minister for Transport if he will support measures to promote the establishment of hydrotreated vegetable oil fuel as a viable alternative to diesel, given the growing interest in renewable energy sources and the need to transition to greener transportation options, similar to compressed natural gas, CNG; and if he will make a statement on the matter. [29501/23]
View answerHydrotreated Vegetable Oil (HVO) is a bioliquid, which when used in the transport sector is referred to as a biofuel. HVO bioliquid is also used as renewable energy for heating and power generators.
Supporting the supply of renewable energy in transport, the Renewable Transport Fuel Policy sets out the pathway to the achievement of both Climate Action Plan targets and European obligations concerning sustainability and GHG reduction criteria. The policy since 2010 has been to increase renewable energy in transport by pursuing progressive increases in the renewable transport fuel supply obligation (RTFO) on fuel suppliers, as provided for under Part 5A of the National Oil Reserves Agency Act 2007.
The trajectory of annual RTFO rate increases to 2030 as set out in the policy is designed to achieve the CAP target of an E10 (10% Ethanol) and B20 (20% Biodiesel equivalent). This is to achieve 1.08MT CO2eq carbon reduction by 2030, representing a significant portion (almost 14%) of the planned transport sector decarbonisation by 2030.
The supply of HVO, among other renewable fuels, will be critical in ensuring the 2030 Climate Action Plan target is met. A Biofuels Study Report conducted on behalf of the Department in 2022 estimated that between 570-730m litres of biodiesel/HVO could be required to meet the Climate Action Plan transport targets by 2030.
Additionally, in 2023 I made regulations under section 44G of the 2007 Act authorising the National Oil Reserves Agency (NORA) to issue additional renewable transport fuel obligation (RTFO) certificates targeting supply of specific renewable transport fuels, including HVO, Tallow Fatty Acid Methyl Ester (FAME), Biomethane, and Green Hydrogen used in transport sectors to further incentivise supply.
With regard to challenges associated with the policy of incentivising increased biofuel supply, in particular concerning future availability and meeting EU sustainability requirements, my Department will establish working groups this year involving stakeholder representatives, to work through these challenges. For example, used cooking oil (UCO), the main feedstock for HVO, is a limited resource and additional demand for it across many sectors will impact on its cost and may heighten the risk of fuel fraud in global supply chains.
To combat risks such as this the EU has introduced more rigorous verification requirements including an EU database for all biofuel supply. In this regard, my department engages with the European Commission on an ongoing basis, including through the working group on sustainability, set up under the European Renewable Energy Directive.
