Biofuel projects to be granted excise relief

Minister for Communications, Marine and Natural Resources Noel Dempsey today announced that sixteen biofuels projects are to be granted excise relief under a recently launched excise relief programme valued at over €200m.

The scheme follows a pilot initiative which was rolled out in 2005. Four distinct types of biofuels will be supported under the new scheme.

These include:

::Biodiesel made from pure plant oil, used cooking oil and tallow, blended with fossil diesel and sold at regular diesel pumps;

::Biodiesel in higher blends of up to 100% in specific fleets of vehicles whose engine warranties cover these blends;

::Bioethanol made from wheat, barley, whey and other feedstocks, blended with petrol and sold at regular petrol pumps. Bioethanol in blends of up to 85% in petrol, which can be used in flexible fuel vehicles will also be placed on the market as a result of this initiative. The 2005 Finance Act allowed for a 50% VRT reduction in such vehicles and a number of companies have now launched flexible fuel vehicles on the Irish market;

::Pure plant oil made from the oilseed rape crop and used in modified diesel engines.

The successful projects cover a broad range of business sectors including renewable energy companies, oil companies, recycling companies and food and farming sector businesses.