Ireland Energy Minister Eamon Ryan has announced that the government has approved a new Biofuels Obligation. From July 2010, fuel suppliers in Ireland will have to include an average of 4% biofuels (fuels derived from sustainable sources) in their annual fuel sales. The Obligation will be on the companies in question and at no cost to the taxpayer.

The biofuels used must produce 35% less greenhouse gases than their fossil fuel comparators (petrol and diesel).

Stringent conditions will also be introduced in relation to the source and type of biofuels supplied. In order for biofuels to be counted towards the obligation, they must meet the EU Sustainability Criteria for biofuels. The conditions include provisions to make sure biofuels cannot come from carbon sinks i.e. rainforests and savannahs and strict reporting requirements on social conditions i.e. water cannot be diverted from indigenous populations.

“We do not have oil supplies of our own in Ireland but we can produce biofuels. Every year, we send over €6 billion a year overseas on our import fossil fuel bill. This figure will rise even more as oil becomes more expensive and more difficult to find.

“The oil crisis in the 70s has shown us how vulnerable we are when we rely on a supply that is not our own to run our transport system and heat our homes.

“We need an alternative to fossil fuels in order that we have a secure energy supply into the future. Biofuels can provide part of the answer. This Obligation will place responsibility on fuel suppliers to move towards low-carbon fuel.

The new laws will help fuel our transport fleet and build up the Irish biofuels production capacity. The Government is providing a guaranteed market for the bio-energy sector.

Our forests and farms can provide the fuel of the future, helping us reduce our carbon emissions at the same time”

Consumers will not be obliged to modify their vehicles in any way.

The Biofuels Obligation will be administered by the National Oil Reserves Agency (NORA) and fuel supply companies will be obliged to meet this cost.

Approximately 30% of the biofuels used in Ireland are produced by Irish companies, a figure which is constantly rising. The Biofuels Obligation aims to build on the progress to date, and create a long term framework for biofuels-production in Ireland. (see Note for Editors and support for Irish bio-energy sector).