HC Deb 28 October 2003 vol 412 cc167-9W
Gregory Barker

To ask the Secretary of State for Environment, Food and Rural Affairs what additional incentives will he made available to the forestry industry to produce renewable products for use in power stations. [133883]

Mr. Bradshaw

[holding answer 22 October 2003]: Defra, in association with the devolved administrations and the Forestry Commission, is setting up a £3.5 million UK-wide Bio-energy Infrastructure Scheme. This scheme will help develop the supply chain required to harvest, store, process and supply biomass, such as energy crops and forestry woodfuel, to energy end-users. The European Commission's approval of the scheme is currently being sought. Subject to this, Defra hopes to launch the scheme in early 2004. Markets for woodfuel in heat, combined heat and power, and power generation are being developed through the Department of Trade and Industry/New Opportunities Fund's Bio-energy Capital Grants Scheme.

Gregory Barker

To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on further assistance for the agriculture industry in producing biomass for use in power stations. [133884]

Mr. Bradshaw

[holding answer 23 October 2003]: This Department is committed to supporting biomass for energy use. In addition to Defra's existing Energy Crops Scheme, which provides funding to support the planting of energy crops and the setting up of producer groups, there are several new initiatives which will support biomass.

Under the reform of the Common Agricultural Policy, crops for energy use can continue to be grown on both set-aside and non set-aside land and will receive payments under the new Single Payments Scheme. An additional Euro 45 per hectare will be available from 1 January 2004 for energy crops grown on non set-aside land. A maximum guaranteed area of 1.5m hectares is fixed for the EU for this additional payment and aid will be reduced if production exceeds that area. Defra, in association with the devolved administrations and the Forestry Commission, is setting up a £3.5 million UK-wide Bio-energy Infrastructure Scheme. This scheme will help develop the supply chain required to harvest, store, process and supply biomass to energy end-users.

Markets for biomass in heat, combined heat and power, and power generation are being developed through the Department of Trade and Industry/New Opportunities Fund's Bio-energy Capital Grants Scheme. The Department of Trade and Industry is currently consulting stakeholders on changes to the rules for co-firing biomass with fossil fuels in conventional power stations. The proposed changes will give longer timescales for the use of biomass, thereby making co-firing a more attractive option for both farmers and power generators.

Mr. Gordon Marsden

To ask the Secretary of State for Environment, Food and Rural Affairs what discussions her Department has had with other Government Departments on the potential for future expansion in the use of biofuels. [134189]

Mr. Bradshaw

The Department has had a number of discussions, both at ministerial and official level, with the Treasury, HM Customs and Excise, the Department for Transport, the Department of Trade and Industry and the Inland Revenue. The potential for biofuels has also been considered by the Ministerial Low Carbon Group and the Ministerial Group on the Implementation of the Energy White Paper.

Mr. Hayes

To ask the Secretary of State for Environment, Food and Rural Affairs what discussions she has had with the farming industry about the opportunities for growers to produce biofuel crops. [134374]

Mr. Bradshaw

The Department has had a number of discussions, both at ministerial and official level, with the National Farmers Union, the Country Land and Business Association and with trade organisations, such as the British Association for Biofuels and Oils and British BioGen, which include farming industry representatives amongst their members. Officials have also had discussions with many individual farmers, plant breeders, agricultural suppliers, farming consultants, other agricultural businesses and potential project developers.

Mr. Hayes

To ask the Secretary of State for Environment, Food and Rural Affairs what quantity of palm oil the United Kingdom imported for use in the biofuel industry in the last year for which figures are available. [134375]

Mr. Bradshaw

Total imports of palm oil in 2001, the latest year for which figures are available, amounted to 1.28 million tonnes. Information is not collected on the use of the oil. Some palm oil is known to be used in the production of biodiesel.