Bioenergy Implementation Plan - South-East Regional Authority

Table 9.6 presents the situation whereby current energy prices increase by 25% and re-assesses the bioenergy based
systems for their viability in the South-East Region in a high energy price scenario. The table shows that an increased
energy price level for fossil fuels, with few exceptions, does not change the conclusions made in the previous sections.
9.4.6. Biodiesel in the Transport Sector
As biodiesel is currently not manufactured in the South-East Region, an estimate of the manufacturing and production
price of biodiesel has been made. The estimation is based on information from Danish studies on biodiesel production
( 40 ) and on estimates of the biodiesel production costs in the South-East Region.
The Irish market price for OSR was added to the estimated manufacturing cost, which resulted in a total estimated
production cost. Within the manufacturing cost, it is assumed that the co-products (glycerine and rape cake) are
valuable products on the market. The profit on biodiesel production is assumed to be 25% of the production cost.
Figure 9.2 illustrates the market price level for biodiesel compared with conventional diesel. Mineral oil tax (MOT) is
included in the diesel cost and biodiesel (i.e. Rape-Methyl-Ester [RME]) is shown both with and without MOT. The price
for conventional diesel is shown for both the low and high energy price scenarios.
Figure 9.2: Production Cost and Market Price for Biodiesel (RME) and Conventional Diesel
1.60
1.40
1.20
€/litre
1.00
0.80
0.60
0.40
0.20
0.80 1.58 1.21 1.09 1.36
0.00
Estimated RME
Production Cost
RME Market Price
incl. VAT & MOT
RME Market Price
incl. VAT, excl. MOT
Conv Diesel Market Price
(low energy price)
Conv Diesel Market Price
(high energy price)
Figure 9.2 shows:
• The market price including VAT and MOT for biodiesel based on OSR has a price level that is quite high in
comparison to conventional diesel, at both the low and high energy price scenarios
• The biodiesel which is currently exempted from MOT (under the current MOTR Scheme) has a price which is
comparable to conventional diesel costs and will be increasingly competitive with any increase in the cost
of conventional diesel
• It is expected that RME production costs will decrease with increased levels of production and the use of
recovered vegetable oil (RVO) and tallow (animal fats) as feedstock for biodiesel production, which will
decrease the market price of RME to make it comparable with conventional diesel
• Once the current MOTR scheme is complete the possibility of applying MOT to biofuels will be reviewed by
the Government and other options for encouraging the indigenous production of biofuels will be considered.
south-east regional authority
údarás réigiúnach an Oir-DheisCIrt
67