Biofuel production and other alternative fuel updates.
Green Biofuels Ireland Ltd. began construction on Ireland’s first commercial scale biodiesel plant, a spokeswoman told Platts April 12. The EUR21 million ($28 million) facility, being built in County Wexford, will have an annual production capacity of 34 million liters (132,100 barrels/year) when it comes in operation in mid-2008. The plant will produce a 5% blend biodiesel fuel that will be sold through main oil distributors. Shareholders in the project, including local farmers, will supply the majority of raw materials including recycled vegetable oil, animal fats and rapeseed oil. Four thousand farmers from the Wexford co-operative will supply rapeseed oil and contracts have already been put in place with farmers to sow rapeseed for exclusive supply to the new facility. Green Biofuels Ireland was one of 16 companies granted a license to produce biofuels in Ireland under a government initiative to promote biofuel production. Under the scheme, which runs initially from 2006 to 2010, the 16 companies are exempt from excise duty. When at full capacity in 2008, the current scheme will result in 163 million liters of biofuels being placed on the Irish transport market, representing 2.2% of the total fuel market. The government has said that it will meet its EU target of 5.75% biofuels market penetration by 2010 and has set a target of 10% biofuel penetration by 2020. It is also committed to introducing a 5% biofuels obligation on fuel suppliers by 2009, which will be developed and put to industry and public consultation within the next 12 months.
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