Dáil Éireann Debate, Tuesday - 28 April 2026
392. Deputy Barry Ward asked the Minister for Transport his views on the use of HVO fuel for transport as an alternative to diesel; if his Department is carrying out any research into the merits of promoting its use at a national level; and if he will make a statement on the matter. [30687/26]
View answerThe Renewable Transport Fuel Policy 2025–2027 sets out a pathway for achievement of Climate Action Plan biofuel targets and European targets for renewable energy in transport as set out in the Renewable Energy Directive. This is achieved through the Renewable Transport Fuel Obligation (RTFO), an obligation on fuel suppliers to ensure a minimum proportion of renewable fuel in all road transport petroleum products supplied in Ireland. Renewable transport fuels, including HVO, that meet EU sustainability and greenhouse gas emissions reduction criteria are eligible for RTFO certificates and may be counted against the obligation.
The RTFO, set at 32% by energy for the 2026 obligation period, is expected to deliver a renewable fuel content in diesel of more than 12% this year. Further planned increases in the RTFO rate to 2030 are expected to result in a physical blend of 20% biofuel in diesel supplied in the State, comprising approximately 7% FAME and 13% HVO. This aligns with the B20 biofuel blending target set out in the Climate Action Plan.
Sustainable renewable transport fuels such as HVO provide immediate climate mitigation benefits utilising the existing vehicle fleet. They will therefore remain an important transition measure in transport decarbonisation in the coming years as the shift to electrification and further increases in public transport and active travel are fully realised.
Research has played a significant role in the development of the RTF Policy. The National Oil Reserves Agency (NORA) is responsible for administration of the RTFO and provides advice and analysis in relation to RTF Policy. In addition, the RES-T Working Group was established by my Department in 2023 to support the achievement of revised European targets and requirements for renewable energy in transport. The focus of the Working Group is on steering appropriate modelling and research, including research undertaken to address the quantum of the various renewable fuels and feedstocks which will be required to meet demand under EU renewable energy targets for advanced biofuel and RFNBO in the road and rail sector and where these fuels and feedstocks will be sourced.
My Department has commissioned a study on the hierarchy of use of HVO across transport and other sectors under the RES-T Working Group. The rationale for the study is to ensure that State intervention through obligations and related incentives are aligned to the most efficient use of HVO across all transport modes, relative to available renewable energy alternatives across these transport modes, the demand for HVO use in non-transport sectors, and decarbonisation and renewable energy targets across sectors. External consultants have been engaged to conduct this study which is expected to be completed by the end of Q2 2026. The output of this study will inform Department policy and plans, addressing concerns raised by the Climate Change Advisory Council in its 2025 Annual Review of Transport, which recommends a coherent plan for the most efficient use of sustainable biofuels across all sectors to be developed by my Department and the Department of Climate, Energy and the Environment.
