Dáil Éireann Debate, Wednesday - 17 April 2024
10. Deputy Colm Burke asked the Minister for Transport what action his Department is taking to research and develop the hydrotreated vegetable oil market in Ireland, in view that HVO fuel could be substituted for diesel in diesel cars, which could lead to an immediate reduction in carbon emissions; and if he will make a statement on the matter. [17017/24]
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 HVO is referred to as biofuel. Renewable transport fuels will remain an important transition measure in transport decarbonisation in the coming years as the shift to electrification and further increases in public transport and active travel are fully realised. Sustainable renewable transport fuels, including HVO, provide immediate climate-change mitigation utilising the existing vehicle fleet. For example, under the European Clean Vehicles Directive, a vehicle with an internal combustion engine using 100% unblended HVO is considered as a ‘clean vehicle’ within the parameters of the directive.
Since 2010, the supply of renewable energy in transport consumption has been incentivised through a national mandate, the renewable transport fuel obligation (RTFO), on fuel suppliers - which is currently set at a rate of 21% by energy of renewable transport fuel as a proportion of total road transport fossil fuel supply. The renewable transport fuel policy is the pathway to incentivise the supply of renewable fuel in transport through annual increases in the RTFO rate to 2030, and is the means of achieving national and European targets for renewable transport fuel supply and transport decarbonisation within the transition from fossil fuels.
HVO used in transport which fulfils EU criteria for sustainability and GHG reduction is eligible for RTFO certificates, which can be counted against the obligation. Additionally, in 2023, I made regulations authorising the National Oil Reserves Agency (NORA) to issue additional RTFO certificates per megajoule of renewable transport fuel supply, to incentivise the supply of certain renewable transport fuels, for use in different transport sectors, including HVO and co-processed HVO.
My Department published the Biofuel Study Report in 2022 which estimated that between 570-730m litres of biodiesel/HVO supply could be required to meet the Climate Action Plan biofuel target by 2030. The Study indicated potential to meet this estimated future supply through industry plans for scaled-up indigenous production of these biofuels. The study notes, however, the likely continued reliance on imported feedstock supply to support this level of estimated future production.
