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Biofuels

Volume 451: debated on Monday 6 November 2006

To ask the Secretary of State for Environment, Food and Rural Affairs (1) what funding is available to farmers wishing to diversify into the production of biofuels and biomass crops; (98645)

(2) what steps he is taking to ensure that farmers are able to take full advantage of the potential of agriculture to produce (a) biofuels, (b) biomass and (c) other alternative sources of energy.

As part of our overall strategy for improving sustainability and reducing the impact of climate change, the Government support the use of biomass sources for the generation of heat and electricity. We are aware of the potential of biomass energy for agriculture and we are working closely with farmers and industry to develop markets and promote uptake.

DEFRA’s Energy Crops Scheme, part of the 2000-06 England Rural Development Programme, provides grants to farmers to establish short rotation coppice (SRC) and miscanthus. The scheme is now closed for applications. The Government have agreed in principle to support the establishment of energy crops under the new Rural Development Programme, which will run from 2007 to 2013, and are currently considering how best to take this forward.

The European Union’s annual €45 per hectare energy aid payment is available to farmers for purpose-grown energy crops grown on non set-aside land.

Farmers can also receive the single payment for purpose-grown energy crops on set-aside or where the European Union’s €45 per hectare energy aid payment is claimed for crops on non set-aside land.

Support for energy crops is provided by R and D funding from DEFRA. This underpins an expansion in the commercial breeding programme. The aim is to double the output of new varieties by developing crops with maximised yield and resistance to fungal diseases and pests. Studies are also looking at the development of non-pesticide control strategies and potential new energy crops such as switch grass and reed canary grass.

The Community Renewables Initiative aims to stimulate community-based partnerships in England to develop renewable energy, including biomass in their localities.

In 2004, the Government commissioned a Biomass Task Force, led by Sir Ben Gill, to identify the barriers to developing bio-energy and to recommend ways to overcome the problems. They published their report in October 2005. In April 2006, the Government published their response1 to the Task Force’s report. This response accepts that energy from crops, trees and waste can make a strong contribution to reducing greenhouse gas emissions and sets out 12 key initiatives and over 60 associated actions to make this happen. A number of the initiatives have already begun, and we published initial information on these in April 2006.

1 www.defra.gov.uk/farm/acu/energy/biomass-taskforce

To ask the Secretary of State for Environment, Food and Rural Affairs what steps he is taking to ensure that farmers who wish to diversify into the production of biomass and biofuels are not hindered by a restrictive regulatory burden. (98648)

Under CAP Single Payment Scheme arrangements crops can be grown for energy use on set-aside land. An additional €45 per hectare payment can also be claimed if crops are grown for energy use on non set-aside land. There are specific requirements placed upon growers and processors of crops in these circumstances. The current regime is, however, subject to review and the UK, along with other member states, is working closely with the Commission to seek simplification of the relevant regulations.

To ask the Secretary of State for Environment, Food and Rural Affairs what change there has been in levels of production of biomass crops in England since 2000. (98662)

The following table details the hectares of miscanthus and short rotation coppice established in England under the Energy Crops Scheme. The figures are cumulative. It also details the growth rate in establishment of these crops since the introduction of the scheme in 2000.

Energy crop

Hectares

Short rotation coppice

Miscanthus

Total established

Growth rate (percentage)

2002

298

52

350

50

2003

391

52

443

27

2004

498

354

852

92

2005

788

1,011

1,799

111

2006

1,180

3,356

4,536

152

2001

233

0

233

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment he has made of the effectiveness of the energy crops scheme; and if he will make a statement. (99224)

The objective of the energy crops scheme is to encourage the establishment of energy crops grown in England. Energy crops are carbon-neutral and, therefore, as a substitute for fossil fuels, can help reduce greenhouse gas emissions.

The following table details the hectares of energy crops established in England under the energy crops scheme since its introduction in 2000.

Short rotation coppice

Miscanthus

Total

2001

233.2

0

233.2

2002

64.5

51.56

116.1

2003

93.71

0

93.71

2004

106.5

302

408.4

2005

290.1

657.9

948

2006

392.2

2,345

2,737

Total

1,180

3,356

4,537

Applications for planting in 2007 indicate a continuing increase in uptake. These figures show the energy crops scheme to be a viable and attractive option for farmers.