IFA questions biomass commitment

THE Government’s real commitment to the development of an indigenous renewable energy industry using agricultural produce and by-products has been questioned by the Irish Farmers’ Association.

IFA alternative land use chairman JJ Kavanagh acknowledged the Government’s introduction of the Biomass Energy Scheme but claimed that bureaucracy has severely stifled a significant uptake.

“Failure to fully align the Business Expansion Scheme (BES) with existing schemes such as the Rural Environment Protection Scheme (REPS) and the Disadvantaged Areas Payments Scheme has deterred many farmers from growing energy crops such as willow and miscanthus.

“Further doubt has been put in growers’ minds over revenues’ proposed tax treatment of these energy crops,” he said.

Mr Kavanagh said the refusal to reallocate unused quota under the Motor Oil Tax Relief Scheme to up-and-running oilseed crushers capable of supplying renewable fuel shows a complete lack of commitment to developing an indigenous transport biofuels sector.

“It appears that despite all the promises we will end up replacing imported fossil fuels with imported renewable fuels,” he said.

Mr Kavanagh said perennial biomass crops such as miscanthus and willow are expensive to establish and take five to six years to pay off.