The Green Party has called on the Government to abolish excise duties on biofuel products in order to help develop the sector.
The party said such a move would be a significant step in boosting the use of the renewable energy and reducing Ireland's reliance on petrol and diesel.
Party spokesman John Gormley said: "It has been done in other countries, but Minister [Noel] Dempsey is refusing to do it here."
Mr Gormley said the Government could also help promote biofuels by using them in all ministerial cars.