Mary Harney (Dublin Mid West, Progressive Democrats)

I propose to take this Adjournment matter on behalf of the Minister for Communications, Marine and Natural Resources. A number of initiatives are in place to support the development of a biofuels sector in Ireland. In 2005, the Minister for Communications, Marine and Natural Resources introduced a pilot mineral oil tax relief scheme for biofuels which has awarded excise relief to eight projects. As a result of the scheme, 16 million litres of biofuels will be placed on the Irish transport market by next year.

Building on the success of this scheme, the Minister launched the second biofuels mineral oil tax relief scheme in July 2006. The new scheme will be rolled out between this year and 2010 at a cost of over €200 million and will enable Ireland to reach a target of 2% market penetration of biofuels by 2008. When fully operational, the relief is expected to support the use and production of some 163 million litres of biofuels each year. The scheme was launched on 25 July and had a closing date of 28 August. Approximately 100 applications have been received across the four categories covered by the scheme. An assessment panel comprising officials from the Department of Communications, Marine and Natural Resources, Sustainable Energy Ireland and Enterprise Ireland has been convened and is currently in the process of assessing the applications received. The promoters of the project to which Deputy Neville referred have applied for excise relief under the scheme. Reflecting the requirements of openness, transparency and equal treatment of all applicants in the competition, and given that the deliberative process is ongoing, the Minister is not in a position to comment on or discuss the details of any application under the scheme. I do not therefore propose to discuss the details of the project in question.

The Government is firmly committed to the development of an Irish biofuels market and to the increased development of bioenergy generally in Ireland. In July, the Minister established a new ministerial taskforce on bioenergy as part of the ongoing policy to increase the share of indigenous renewable energy in the Irish heating, electricity and transport markets. The taskforce's members include the Tánaiste and the Ministers for Communications, Marine and Natural Resources, Finance, Agriculture and Food, Environment, Heritage and Local Government, Transport and Enterprise, Trade and Employment. The Taoiseach's office is also represented. The primary objective of the taskforce is to draw up a cohesive national bioenergy strategy by the end of the year. This strategy will also take account of EU developments and the views of stakeholders. The taskforce is being supported in its work by a senior officials' group representing the Departments concerned. Consideration of options to further increase market penetration of biofuels is a critical element of the work of the ministerial taskforce. The Green Paper on energy, which was published by the Minister, Deputy Noel Dempsey, last month, suggests a target of 5.75% market penetration of biofuels in Ireland by 2010 and the taskforce is considering the options available to Government in achieving such a target.

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