IFA claims lack of government policy damaging to biofuel sector

FARMERS who followed government advice and planted rape seed, miscanthus, willow and other biomass and biofuel crops are furious about a shift in state bioenergy policy, according to the Irish Farmers Association.

President John Bryan said the Government’s bioenergy scheme was “a shambles on the ground”.

He has told Energy Minister Eamonn Ryan that there was an urgent need to restore confidence to the bioenergy sector, which has been very badly damaged through lack of clear Government policy.

Mr Bryan said: “We highlighted the serious concern of farmers about the Biofuels Obligation Scheme, which was introduced on July 1, 2010. The scheme provides no support to Irish producers and makes indigenous production of bioethanol and biodiesel unsustainable.”

JJ Kavanagh, chairman of IFA’s Alternative Land Use Committee, said a major concern for farmers is the pace at which Government bioenergy policy is being implemented. The REFIT tariff, which was announced in May, will now not actually be introduced until the end of the year, two years after it was first promised.

Mr Kavanagh added: “The goalposts have been moved. A lot of people have paid out €4,000-€6,000 on upgrading their lorries to burn pure plant oil. When people weren’t paying excise, it made sense to use pure plant oil over diesel. Now they’re introducing certificates, but there’s no market for certificates.

“We are asking the minister to underwrite the certificates to the same value of the excise relief, which is due to run out at the end of this year. If he’s that confident in the scheme, underwriting the certs shouldn’t be a problem.”

Mr Bryan told the minister that unless the concerns are addressed, the sector will collapse, which will have a long lasting negative impact on the wider bioenergy sector.

“These delays are unacceptable and are threatening the future of the bioenergy sector,” he added.

“Farmers have been establishing bioenergy crops over the last number of years expecting to supply into the renewable electricity market. There are sheds full of bioenergy crops around the country without a market and this must be addressed now.”