JHM Crops Ltd.

MINISTER MUST RESTORE CONFIDENCE IN BIOENERGY SECTOR - IFA
2010-09-28



IFA President John Bryan led a delegation that met Energy Minister Eamonn Ryan this week to highlight the disconnect between Government bioenergy policy targets and the shambles on the ground.

Mr Bryan told the Minister that there was an urgent need to restore confidence to the bioenergy sector, which has been very badly damaged through lack of clear Government policy and decisions to provide certainty and a viable return from investing in biomass, bio-fuels and micro energy.

The IFA delegation highlighted the serious concern of farmers about the Biofuels Obligation Scheme, which was introduced on 1st July 2010. The scheme provides no support to Irish producers and makes indigenous production of bioethanol and biodiesel unsustainable.

Mr. Bryan said the Minister must provide assurances to Biofuel producers by underwriting the value of indigenous certificates, at least until the market stabilises. He told the Minister that unless the concerns are addressed, the sector will collapse which will have a long lasting negative impact on the wider bioenergy sector.

JJ Kavanagh, Chairman of IFA’s Alternative Land Use Committee, said that a major concern for farmers is the pace at which Government bioenergy policy is being implemented. The REFIT tariff, which was announced in May, will now not actually be introduced until the end of the year. This will be over two years since it was first promised.

“These delays are unacceptable and are threatening the future of the bioenergy sector. Farmers have been establishing bioenergy crops over the last number of years expecting to supply into the renewable electricity market. There are sheds full of bioenergy crops around the country without a market and this must be addressed now,” he said.