Dáil Éireann Debate, Monday - 11 September 2023
255. Deputy Cian O'Callaghan asked the Minister for Transport when hydrotreated vegetable oil will be accessible by the general public in service stations; if he has plans to implement this in order to reach our climate targets; and if he will make a statement on the matter. [37411/23]
View answerHVO (Hydrotreated Vegetable Oil) is a drop in bioliquid which can replace fossil diesel up to 100%, with GHG reduction benefits. When used in transport the HVO is referred to as biofuel.
HVO is expected to meet a large proportion of the increase in biofuel supply to decarbonise the transport sector in the short-terms as a transition measure. It is understood that some fuel suppliers have recently started to provide a small number of HVO only pumps at service stations where it is commercial to do so, catering mainly for HDV refuelling.
The supply of renewable energy in transport consumption generally is mandated in Ireland through the renewable transport fuel obligation (RTFO) on fuel suppliers. HVO used in transport which fulfils EU criteria for sustainability and GHG reduction is eligible for RTFO certificates, for each megajoule of renewable energy supplied, which can be counted against the obligation. The National Oil Reserves Agency (NORA) administers the obligation which is currently set at a rate of 17% by energy as a proportion of total road transport fossil fuel supply.
Obligated parties (fuel suppliers) have a variety of methods to meet the obligation, incentivising a competitive market action to deliver increased renewables in transport, e.g., Bioethanol in petrol, Biodiesel (FAME) or HVO in diesel. HVO supply can count towards the blending obligation, and the transport 2030 decarbonisation target, whether it is sold blended with petrol or diesel, or as 100% HVO.
To further incentivise the supply of HVO in the transport sector in 2023 renewable transport fuel regulations were introduced to allow the award by the NORA of additional RTFO certificates for supply of HVO in the transport sector.
Supporting the supply of renewable energy in transport, the Renewable Transport Fuel Policy 2023-2025 sets out an indicative trajectory of annual increase in the blending obligation rate as the pathway to the achievement of the Climate Action Plan biofuel target based upon an E10 (up to 10% ethanol) in petrol and B20 (20% biodiesel equivalent) in diesel by 2030. As currently agreed by Government, I have no plans to review the policy or the biofuel target as set out in the climate action plan until at least 2025.
The Biofuel Study Report 2022 estimates that there will be sufficient HVO supply to meet the projected transport consumption demand for renewable fuel to 2030 under the Climate Action Plan target. However, the Study also recommends safeguarding against risk of biofuel fraud, in light of the already ambitious domestic biofuel targets, through a robust implementation of EU sustainability oversight requirements on biofuel supply. The Study also recommends the acceleration of electrification in transport in line with Climate Action Plan targets, and consideration of higher targets for supply of more advanced biofuels, as well as implementing targets for renewable fuels of non-biological origin such as green hydrogen.
Any future review of the CAP biofuel 2030 target for transport decarbonisation will take account of technological developments in zero emission and renewable fuels. My Department is currently consulting on an electric charging infrastructure strategy as a priority. A revision of the National Planning Framework for alternative fuels is also commencing this year, which will address new European alternative fuel infrastructure requirements.
