HVO fuel production
Senator Lynch called for greater domestic use and production of hydrotreated vegetable oil, arguing it could cut emissions and reduce dependence on imports.
This morning, I rise to speak about the domestic production and use of hydrotreated vegetable oil, commonly known as HVO. We all understand the challenges we face in achieving our 2030 climate goals. I really believe we are missing out by not utilising HVO to its full extent. HVO is a fuel that can be used without any engine modifications. It reduces CO2 emissions by up to 90% over its entire life cycle. As of 1 January this year, the mandatory share of renewable fuels in the transport sector has risen to 32%. We are mandating the use of these fuels yet we are almost entirely dependent on imports from abroad. Basically, I believe we are exporting the economic opportunities of the green transition. We only need to look to our European partners to see what is possible and what can be done. Austrian postal services have fully converted their national truck fleet to run on HVO. This replaces around 6 million litres of diesel each year with fuel made from waste oils and residues. It is expected to reduce emissions by several thousand tonnes of CO2 annually. In Ireland, we have the raw materials - animal fats and used vegetable oils - and we have the expert knowledge at places like the Whitegate refinery. However, we lack clear capital investment signals and excise parity that would allow our domestic HVO industry to grow. Our farmers can use HVO as an alternative to green diesel. It is an area in which my colleague, Councillor John Reilly in Louth, has done a lot of work. He has consistently called for the increased use of HVO and a reduction of VAT on HVO. At the moment, farmers who use HVO are paying 23% VAT, as opposed to 13.5% VAT on green diesel, and we need to rectify this. If we are serious about energy transition and energy security, we cannot just be consumers of other countries' innovations. We need to make our own efforts to demonstrate that we are serious about this. Something like further use of HVO is a simple solution and these are the kinds of solutions we need to look at and implement.