EC backs excise relief for biofuel production
Provision was made in the 2004 Finance Act for an excise relief on biofuels, where these are deemed essential to a pilot project, but the Commission’s approval was required.
Minister for Finance, Brian Cowen has welcomed European Commission State aid approval for the Scheme of Excise Relief for Biofuels.
Biogreen, a company based in Wexford, which campaigned for the approval over the past 13 months, said Brussels has just announced that an excise derogation of 100% has been granted.
Welcoming the news, Raymond O’Malley, company chairman, said the decision is a huge boost for the Irish tillage sector, which can now grow “oil from land”.
“The sector can now generate income from energy crops as well as providing an alternative fuel for diesel engines at a retail price that is extremely competitive to fossil fuels,” he said.
Mr O’Malley, a prominent farm leader from Ardee, Co Louth, said the decision allows Biogreen to produce and sell its Rapoleum biofuel product to diesel engine vehicle owners at a competitive price.
A conversion kit is required for the engine which allows the vehicle to use pure Rapoleum or a blend of Rapoleum and traditional diesel with no negative impact on vehicle performance.
“This excise derogation will allow over 18,000 acres of oil seed rape to be grown this year for the production of biofuel. “For the beleaguered tillage sector that has been rocked with bad news for the past two months, this announcement must bring a welcome ray of hope.
“We are already offering contracts to Irish tillage farmers for the coming season and with this announcement we will be looking for a substantial increase in acreage to meet the expected demand,” he said.
