The Irish meat processing sector and farmers could face a fresh “threat” from new transport fuel rules that could “close down” the Irish biofuels sector, an industry group has warned.
According to Seán Finan, chief executive of the Irish Bioenergy Association (IrBEA), Irish biodiesel producers use animal fats from the meat processing sector and used cooking oil (UCO) to produce biodiesel.
The association claims that a new proposal from the Minister for the Environment, Climate and Communications, Eamon Ryan, will close down the Irish biofuels sector in favour of imported Hydrogenated Vegetable Oil (HVO).
Irish fuel suppliers
According to IrBEA, Irish fuel suppliers have been required to blend in a proportion of biofuel into all road transport fuels since 2010.
But it claims that under new rules, that are expected to be introduced by Minister Ryan, Irish biofuels producers will be at a “distinct disadvantage over imported biofuels”.
The IrBEA has said the minister’s proposal “will give an enhanced multiplier to HVO over Irish-produced biodiesel with the potential to wipe out indigenous biofuel production in favour of imported HVO”.
The association has appealed to Minister Ryan not to go ahead with his proposals.
Finan stated: “This sustainable biofuel production and its viability is threatened with the new proposals. This will collapse Irish biofuel production at the stroke of a pen.
“The market for Irish tallow will disappear overnight. This will cause interruptions to the rendering and meat processing sectors. This disruptive change will impact their ability to process fallen animals, specified risk materials and fats.”
He said that over the last 10 years the “vast majority of renewable transport diesel fuel has come from this sector”.
“Biofuel blending in Ireland avoided approximately 520,000t of carbon dioxide (CO2) emissions,” Finan added.
The IrBEA believes that if enhanced multipliers are given to HVO it will “automatically severely and negatively impact Irish biodiesel production facilities”.
It believes this will directly lead to the loss of jobs in rural Ireland and hundreds of jobs in the supply chain.
Finan added: “Biofuel producers have already reported demand dissipation for Irish biodiesel and biomethane and a fall in market prices, accelerated by anticipation of the implementation of the regulation.
“If the new regulation is implemented, Ireland would be the first in Europe to discriminate against biodiesel in favour of imported fuels and would have massive negative repercussions for Ireland’s biofuels producers.”