I propose to take Questions Nos. 9, 19, 28, 41, 43, 47, 76, 198, 208 to 211, inclusive, and 242 together.
My Department is responsible for the promotion and development of renewable energy including biofuels and I am committed to the development and promotion of a biofuels market in Ireland's transport fuel sector, and to the development of alternative fuels which can contribute to emissions reductions and security of supply.
In 2004, my Department secured an amendment to the Finance Act 1999, which provides for the introduction of a pilot scheme for mineral oil tax relief for biofuels which is designed either to produce biofuel or test the technical viability of biofuel for use as motor fuel.
A scheme under the Act has been agreed between my Department and the Department of Finance and received State aids clearance from the Commission in March 2005. Under the scheme, mineral oil tax relief may be granted for pilot projects producing up to 6 million litres of pure plant oil, 1 million litres of biodiesel and 1 million litres of bioethanol.
The scheme was publicly advertised as a competitive "call for proposals" on 20 April 2005 and the closing date for receipt of applications was 13 May 2005. A total of 34 applications were received under the call for proposals by the closing date. Applications were received under all three categories of biofuel.
The proposals are currently being evaluated by my Department and Sustainable Energy Ireland. It is therefore anticipated that my Department will be in a position to make recommendations to the Department of Finance shortly. The Department of Finance will then consider these recommendations and revert to my Department with a decision at which stage my Department will be in a position to communicate decisions to all applicants. The scheme is an initial measure designed to stimulate market development.
Sustainable Energy Ireland, SEI, was established under the Sustainable Energy Act 2002 to promote and assist in the sustainable production, supply and use of energy in support of Government policy. A number of SEI research, development and demonstration programmes are currently in operation across all sectors of the economy addressing these strategic objectives.
SEI is also funding a number of biomass projects and studies through its renewable energy research development and demonstration programme. Under the programme, SEI offers capital grant aid for biofuels market demonstration projects in the pure plant oil, biodiesel and bioethanol categories. Funding of €250,000 has already been awarded by SEI to one company, which is demonstrating the feasibility of producing and selling vegetable oil locally as a transport fuel. It is intended that further grant aid will be available under the programme for biofuel demonstration projects.
In addition to the existing demonstration project, SEI has provided grant aid to Teagasc for a study to establish testing procedures for oil quality assurance in the use of pure plant oil. The results of this study will guide the production and quality assurance of pure plant oil and will be critical to building market confidence.
SEI has also published a resource study on recovered vegetable oil and animal fats, which provides comprehensive information on the extent of this resource in Ireland and its availability for the purposes of biodiesel production.
It is anticipated that the initial fiscal and grant-aid support measures will lead to market penetration of biofuels of 0.13% within two years, and will replace over 6 million litres of imported fuels. I have had initial preliminary contact with the Minister for Finance about the possible scope for scaling up fiscal support for biofuels. Further measures to increase market penetration over a longer timeframe are also being considered in consultation with all of the relevant Government Departments. A liquid biofuels strategy study was published by Sustainable Energy Ireland in December 2004, and provides comprehensive details on the potential for the development of a biofuels market in Ireland and options to stimulate the market.
The national climate change strategy sets out the strategies and targets for meeting Ireland's Kyoto commitments. Implementation of transport initiatives in the national climate change strategy is a matter for my colleague, the Minister for Transport. My colleague, the Minister for the Environment, Heritage and Local Government, has lead responsibility for Government policy on meeting Ireland's target under the Kyoto Protocol. I understand that work on a review of the national climate change strategy, taking account of developments since its publication at the end of 2000, is currently in progress in his Department and will be completed in the coming months.