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Construction of Ireland’s first large-scale biodiesel plant underway Print E-mail
Written by Giles Clark, London   
Friday, 13 April 2007

The start of construction for Ireland’s first large-scale biodiesel production facility, at New Ross took place yesterday (12th April). Noel Dempsey, T.D., Minister for Communications, Marine and Natural Resources, described the event as “an historic milestone in the development of Ireland’s biofuels market”.

Green Biofuels Ireland intends to commence production of biodiesel from oil seed rape, recovered vegetable oil and animal fats in 2008. The raw materials for the biodiesel production will be sourced principally from the company’s shareholders which include existing RVO handlers, as well as the Wexford Farmer’s Co-op, which has 4,000 farmer shareholders. The Minister noted that company’s foresight in ensuring security of raw material supply through its shareholder network. He also described the supply chain as a “win-win” for farmers in the South East and for waste managers. “The structuring of the supply chain will also provide significant new growing opportunities for farmers in the South East and a new outlet for the processing of waste vegetable oil” Minister Dempsey said. 

The plant will produce 34m litres of biodiesel per annum. The project has received an allocation of excise relief under the Department of Communications, Marine and Natural Resources’ “Biofuels Mineral Oil Tax Relief” Scheme, which was launched last year and will be rolled out between 2006 and 2010. As a result of this scheme, and the earlier pilot scheme, biofuels are already being mainstreamed in blends of up to 5% in a range of existing petrol and diesel pumps in Ireland, and higher blends are being sold to identified vehicle fleets.

In February 2007, Minister Dempsey announced that Ireland would move to a biofuels obligation in 2009, where fuel suppliers would be required to ensure that biofuels represent a certain percentage of their annual fuel sales. In announcing the obligation, the Minister set targets of 5.75% market penetration by 2010 and 10% by 2020.

The obligation will provide long-term certainty in the market for companies such as Green Biofuels Ireland, and will provide significant further scope for the agricultural sector to become involved in biofuels production. Supports have also been established through the Department of Agriculture and Food, to encourage farmers to diversify into the growing of energy crops.

In addition to these developments the Bioenergy Action Plan, which Minister Dempsey published earlier this year, commits to the introduction of biofuels in blends of up to 5% in existing Local Authority and CIE fleets and in the range of 30% in new vehicle purchases.

Speaking at today’s event in New Ross, Minister Dempsey said “I look forward to the full commissioning of this plant and believe that this development, along with the majority of projects under the Biofuels Mineral Oil Tax Relief schemes, and the Biofuels Obligation, will deliver benefits to rural communities across Ireland, and assist us in moving to a cleaner, greener transport market”.
 
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