Dempsey announces new biofuel obligation

Minister for Communications Marine and Natural Resources Noel Dempsey today announced that he is introducing a biofuels obligation which will ensure that biofuels represent 5.75% of Ireland's transport fuel market by 2009.

The obligation will allow Ireland to achieve the EU Biofuels Directive target a year in advance of the 2010 deadline

Minister Dempsey also announced a new 2020 target of 10% market penetration of biofuels which would also be delivered by the Biofuels Obligation.

Speaking today Minster Dempsey said: "This move to introduce a biofuels obligation will allow us to achieve carbon savings of over 700,000 tonnes per year by 2009. This is the equivalent of taking almost 200,000 cars off the road annually. Combined with the comprehensive renewable electricity and heat measures which I introduced in the last year, by 2009 renewable energy measures will save over 2 million tonnes of CO2 per year.

"By establishing a 2020 target for biofuels, we are providing market players with long-term certainty to develop economically viable scale into their projects going forward. This will facilitate industry in developing appropriate financing, planting, refining, storage, distribution and supply chain logistics".

"This decision represents a long-term commitment by Government to the development of a biofuels market in Ireland," noted Minister Dempsey.

Farmers will also be incentivised by a new €6m bioenergy scheme to top-up the EU energy crop premium. Under this scheme, which has just been introduced by the Department of Agriculture and Food, farmers will receive an additional €80 per hectare on top of the existing €45 premium.

"While the Biofuels Directive target is not mandatory, the Government recognises the importance of developing a more sustainable transport sector" Minister Dempsey concluded.