Biofuel producers claim green fuel usage scheme puts jobs at risk
The IFA is enraged that the new Biofuels Obligation Scheme (BOS) could lead Irish people to buy imported fuels. The IFA argues that the Government’s bid to get Irish motorists to fill their tanks with a blend of 10% biofuel and 90% petrol by 2020, as required by the EU’s Renewable Energy Directive, is pointless if people simply replace one imported fuel with another.
IFA Alternative Land Use project team chairman, JJ Kavanagh, says the failure of the BOS scheme to support indigenous biofuels will lead to widespread job losses and the closure of indigenous biofuel production plants. He said it also undermines the EU’s renewable energy targets.
Mr Kavanagh said: “This is a wasted opportunity by the Government to expand and develop the indigenous biofuels industry. If properly established, it could provide increased employment particularly in rural areas and create a much-needed alternative market for tillage farmers. It would also reduce our dependence on imported oil and increase Ireland’s energy security.
“We cannot see how the new scheme can create a degree of certainty in the biofuels market, nor will it encourage investment in sustainable biofuel production. Companies have invested heavily in the industry, through Government incentives, and now find themselves in a very precarious situation.
“Many in the indigenous biofuels industry are convinced that the obligated parties will choose to import the required transport fuel mix and pay the penalty as it will be cheaper and easier to administer.”
Having spoken with many of the main biofuel producers, JJ Kavanagh said that he was very concerned that the new BOS scheme would result in the closure of many of the biofuel production plants that were previously encouraged and supported by the Government through the Mineral Oil Tax Relief (MOTR) scheme.
IFA have sought an urgent meeting with Energy Minister Eamon Ryan to ensure the survival of the indigenous biofuels industry.
