IFA seeks fresh approach to biofuels

THE Government has been urged to stimulate the development of a viable indigenous biofuel industry similar to the successful approach taken by Germany’s government.

IFA Bio-Energy Project team leader JJ Kavanagh backed Communications, Marine and Natural Resources Minister Noel Dempsey’s announcement to move to mandatory minimum inclusion rates for biofuel use in transport.

But he told a meeting of more than 200 growers in Enniscorthy, Co Wexford, that many successful applicants under the current excise relief scheme have no intention to set up manufacturing in Ireland.

“The real danger now is imported biofuels will be used to avail of the relief. Instead of creating an indigenous industry capable of addressing security of supply, Ireland will end up substituting imported fossil fuels with imported biofuels,” said Mr Kavanagh.

He said the Government must extend the scheme and target the excise relief in a focused manner.

“While divvying up the allocation to 16 projects may have been politically attractive, it ignored the importance of scale in developing a sustainable biofuels sector, particularly for bio-ethanol and biodiesel production.

Mr Kavanagh said the Government must reappraise its energy strategy and prioritise the development of an indigenous biofuels sector.

“Given the proper investment climate, Irish agriculture could supply enough raw materials to produce 500-600 million litres of transport biofuels per annum,” he said.