The bio-energy division of National Toll Roads (NTR) has said it is looking seriously at a number of sites in the south of the country for the development of a biofuel processing plant.

Bioverda announced yesterday that it had applied to the Department of Communications, Marine and Natural Resources for inclusion in its new excise duty relief scheme for the manufacturers, importers and consumers of biofuels.

Bioverda managing director John Mullins said the company was currently involved in the construction of two bio-diesel plants in Germany. He said these would bring 150 million litres of biodiesel capacity on line by March of next year.

Mr Mullins said the company planned to import biofuel from its plants in Germany to Ireland as an interim measure, pending the development of a facility here.

He said he welcomed the introduction of the Government's biofuels excise duty relief scheme as it "provides opportunities for companies like Bioverda to develop biofuel solutions in our home market".

Mr Mullins urged the Department of Communications, Marine and Natural Resources "to pay special attention to projects and proposals that supported agricultural conversion to energy crops and biofuel production in Ireland".

The Government signalled the introduction of the excise duty relief scheme for biofuels in the Budget last December.

The Department of Communications, Marine and Natural Resources has in recent weeks invited submissions for inclusion in the scheme.

Under the scheme, excise duty relief would be provided for biodiesel produced from oil seed rape, bio-ethanol and plant oils.

The Government's biofuels excise relief package is aimed at placing 163 million litres of biofuels on the Irish market by 2008.