Green fuel projects to get €200m tax relief
Over €200m is being offered in excise relief for biofuels projects to increase the volume of environmentally friendly fuel on the market, it was confirmed today.
It is estimated the amount of pollution eliminated under the five-year scheme would be the equivalent of removing around 70,000 cars a year from the roads.
The scheme will provide excise relief on selected biofuels projects aiming to make 163 million litres of the environmentally friendly fuel, or 2.2% of the entire market, on sale by 2008.
Natural Resources Minister Noel Dempsey, who hailed the scheme as a significant step in complying with the EU Biofuels Directive, said: “This scheme builds on a pilot biofuels initiative introduced in 2005 and is a critical step in building a new Irish biofuels sector and market.”
Applications for excise relief under the scheme are being accepted over the next five-weeks.
The scheme designed to make biofuels more commonplace on the market should result in savings of over 1.2m tonnes of hazardous carbon gas over the five years of the programme.
Mr Dempsey said it would provide significant opportunities for farmers and other businesses to build a new biofuels sector and provide alternative sources of income and local employment in the process.
The scheme also envisages providing profit-making opportunities for waste products such as used vegetable oil ad tallow. Under the programme, owners of fleets of vehicles can become environmentally friendly by using high blends of biofuels.
Mr Dempsey said it would work to reduce Ireland’s almost 100% dependence on imported fossil fuels for transport.
It will provide excise relief on the biofuel proportion of diesel or petrol.
“This scheme addresses our concerns of environmental sustainability, security of supply, assisting with the development of indigenous resource and meeting Ireland’s EU obligations,” he said.
Capital grants for biofuels facilities are also being provided, with other initiatives including a €22m biomass heating grants programme and a €27m greener homes programme.
The minister stressed Ireland was engaging proactively with the European Commission in relation to bio-energy policy.
“The debate in Europe is moving ahead apace and I will now be working with my Government and EU colleagues to develop further new policies that will incentivise the bio-energy sector, across the entire supply chain, from farmer and forester and waste managers, to developers and end-users which include drivers, home owners, and the business sector,” he said.
The excise scheme accepts applications for biofuels blended with diesel complying with the standards, bio-ethanol in a 5% blend with petrol, pure plant oil and biofuels for use in captive fleets.
Biofuels can be produced from oil crops such as oil seed rape, from tallow and recovered vegetable oil. The environmentally friendly fuel blended at 5% can be used in all diesel engines and is covered by engine warranties.
