Biofuel production - Incentives for farmers are needed

The change in the way that biofuel is being gradually introduced in the makeup of petrol and diesel should be warmly welcomed. Minister for Communications, Energy and Natural Resources Eamon Ryan announced yesterday that 4% of the petrol and diesel sold to motorists will have to come from biofuels by the middle of next year.

The small percentage mix will not require any change in vehicles. The minister explained that he plans to raise the threshold gradually as the necessary technology is developed.

In the European Commission 2009 report, biofuel made up only 0.6% of the diesel and petrol in Ireland, and two-thirds of that was imported. This country was mandated to have the biofuel threshold raised to 5.75% by next year, so we are already lagging behind.

The advantages of encouraging the use of biofuels are obvious. Up to €6bn a year is spent importing oil and gas. Their replacement with biofuels could reduce the danger of a future oil shock resulting from further instability in the Middle East, if the biofuel is produced locally. The minister stressed that helping to provide energy security is the main reason for the latest changes.

The new arrangements do not specify where the biofuel should be sourced. Hence it could come from anywhere, whether it is a sustainable source or not.

It makes no economic sense to replace oil imports with biofuel imports, especially when producing biofuel is more expensive than pumping oil from the ground. It will probably remain more expensive, but with the price of oil at $80 a barrel, biofuel is becoming a more attractive alternative. Biofuels also have a distinct advantage in that they can be produced in Ireland.

The Government needs to take steps to encourage biofuel production here. The agricultural capacity exists but the necessary incentives for farmers to diversify have to be introduced. As things stand the Irish Bioenergy Association warns that it is cheaper to import biofuels, because they are so expensive to produce here.

Incentives should be introduced to encourage people to produce biofuels in this country by making the whole thing economically attractive for business and the agricultural sector to get involved. There is little benefit for the country in continuing to import the bulk of this alternative fuel from the US and Latin America.

If Irish agriculture used more of its own natural resources to produce biofuels, the benefits would be more apparent all round. The whole thing has the potential to develop a new industry with significant potential for employment in this country.

“We can turn Irish crops into oil and we can turn Irish waste products into oil as well,” Minister Ryan argued. With determination and imagination this could be of benefit to the whole country.