Bioenergy Implementation Plan - South-East Regional Authority

plants have been established. Currently, the framework conditions for biogas utilisation in Denmark are being negotiated in the
Danish Parliament. It is expected that the framework conditions will be improved substantially in order to restart the Danish
establishment of biogas plants.
An isolated comparison of the current Irish framework conditions with the Danish conditions shows that the Irish framework
conditions for the utilisation of biogas are less attractive than the Danish framework conditions during the 1990s.
Access to alternative organic material (the amounts and the prices involved) and the possibilities for utilising surplus
heat from the biogas motors are other crucial factors, which depend on local conditions. Organic material is most
likely available on the market, but the conditions are not known, since no market price for these products has been
established. Large scale sale of surplus heat seems difficult to obtain, since district heating is not currently taking place
in the Region. In the case of farm-based biogas plants, the surplus heat from the motors can be utilised as an input
to the biogas process and, to some extent, to deliver heat to the farm in question.
Conclusion: As a basis for the target setting for the penetration of biogas to the regional energy market it is assumed
that biogas utilisation is not viable under the current conditions.
9.5.3. Sugar Beet and Cereals for Bioethanol Production
Sugar beet and cereals can be used for bioethanol production. Bioethanol can be blended with petrol and used as a
transport fuel, as described in Chapter 8. If bioethanol is to compete on the market, the production price plus overhead
margin for bioethanol needs to be comparable to the retail price for petrol, including MOT.
The retail price for petrol (28 June 2007) is €1.173/litre, of which MOT is €0.44/litre. Recent information from the EU
Commission indicates that the current European market price (July 2007) for bioethanol is €0.75/litre.
By applying the international market price, bioethanol is competitive with the retail petrol price, provided bioethanol is
granted MOT exemption. If tax exemption is not granted, the bioethanol price (€0.75 + €0.44 = 1.19 €/litre) will be at
the same level as the current retail price for petrol (1.173 Euro/litre). Without tax exemption, bioethanol will only be
introduced on the market, if mandatory measures are being used.
However, Ireland needs to comply with the EU Biofuels Directive, which requires that 5.75% of all petrol and diesel
needs to be biofuel in all member states before 31 December 2010. It is unlikely that all of this biofuel can be provided
in the form of biodiesel. It is assumed, therefore, that suitable financial incentives or other regulation will be put in place
within the near future to improve the competitiveness of bioethanol.
Conclusion: As a basis for target setting for the penetration of bioethanol to the transport fuel market, it is assumed that
bioethanol penetration will follow the EU Biofuels Directive targets.
9.5.4. Surplus Straw from Agriculture
Straw, which is produced as a dry residue of the agricultural sector, can be combusted to produce heat and electricity.
However, there are already a number of alternative uses for the straw produced within the Region, including animal
bedding, compost production and its re-incorporation into soil as a fertiliser. Studies have estimated that approximately
14% of this resource is available for energy generation.
south-east regional authority
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