Growing energy crops still a concern

THE economics of growing energy crops in Ireland remains a concern, according to the Department of Agriculture and Food’s annual review and outlook.

It points out that additional incentives are, however, being put in place on the supply side to encourage farmers to grow more of these crops.

The publication stresses that increased usage of biofuels would reduce dependence on fossil fuels and play an important role in reducing carbon dioxide (CO2) emissions. It also represents a new opportunity for farmers and rural communities to get involved in energy crop production.

Biomass crops such as willow and miscanthus have considerable potential for heat and electricity generation. But production is relatively undeveloped in Ireland primarily due to high establishment costs estimated at €2,900 per hectare and lack of economies of scale.

“To aid the development of this sector, a new Bioenergy Establishment Scheme is being set-up for a limited period, to aid the planting of willow and miscanthus. A sum of €8 million is being allocated to support establishment costs over the period 2007-2009,” the review states.

The review and outlook also states that the National Bioenergy Action Plan will be informed by developments at European Union level including a proposal for a new binding target for biofuels of 10% of vehicle fuel by 2020.