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DARAGH MCCULLOUGH – 29 AUGUST 2013 A recent vote by EU politicians makes the future of the nascent biofuel sector here even more precarious than it already was. A decade ago we were told that the world had entered a new post-peak oil era. With dwindling supplies, countries needed to take action to secure new sustainable sources of energy. Ireland was as good a case for bioenergy as anywhere, spending €6bn annually on imported energy. Everybody wanted a slice of that action. So ambitious targets obliging us to have 20pc of our total energy requirements coming from renewable sources by 2020 were signed into law. The Government pumped millions into schemes to incentivise farmers to grow new biomass crops such as elephant grass and put up oil-pressing plants. To the delight of the sceptics, much of this endeavour appears to be unravelling at the seams. Yes, wind-farms continue to be constructed and solar-panels adorn more and more roof-tops. But hundreds of acres of elephant grass, or ‘miscanthus’ to give it its proper name, have already been ploughed in by disillusioned farmers. The more enterprising individuals that invested millions in briquetting and oil-pressing plants have lost their shirts on the enterprises as market reality kicked in. Fossil fuels are becoming more expensive, but we are becoming more efficient at using them and extracting them. The actual end-game in terms of supplies is still so far off that the market still doesn’t price it into the equation. Irish farmers discovered to their cost that the rest of the planet is also able to generate masses of biomass – and ship it in here at a fraction of the cost that the Irish farmer needs to make a profit. Waste by-products such as palm kernals and cocoa shells are available for virtually nothing. The countries that produce these often can’t produce beef or milk at the same cost that we can in Ireland. Farmers and policymakers momentarily lost sight of what they had – a real competitive advantage in producing. At the same time, policymakers are still confused as to whether growing crops to fuel our cars actually makes sense. As a result, after their initial wave of enthusiasm, European politicians are slowing coming around to the idea that promoting the production of biomass and biofuels may not be the best use of our taxes. “Biofuels increase the demand for crops, which can encourage, at a global level, putting land into production, land that might not otherwise be used. And greater demand can lead to higher prices for food, hitting the poor hardest,” said Ireland East MEP Mairead McGuinness . As a result the EU recently voted to cap the amount of biofuel that can come from food sources at 5.5pc. But experts in Teagasc still believe that there is a future in the sector for those willing to take the risk. “We had to start somewhere in our search for alternatives to fossil fuels,” said renewable energy specialist Barry Caslin. “Growing miscanthus and oilseed rape crops to simply burn for heat is first generation stuff. Algae, waste digesters and enzymes are part of the second generation, and at some point we will be growing fuel in sustainable ways that is competitive with fossil fuels,” he said. In the meantime, Mr Caslin believes that Ireland is losing out on investment, jobs and economic growth if the Government doesn’t continue to support the advancement of the sector. It’s a classic case of the chicken and egg. Should we continue subsidising the development of renewable energy sources or should we wait until the market can support the development of the sector itself? Time will tell. Irish Independent Continue reading →