Irish farmers plan to grow over 1,400 hectares (3,000 acres) of willow and elephant grass for bioenergy this year, according to figures released by the Department of Agriculture.
It said that 133 landowners had applied for grants to plant miscanthus (elephant grass), and 17 to plant willow on an area which will reach the target set by the department for the first year of the scheme.
The Minister for Agriculture, Mary Coughlan, said the level of applications represented a significant first step in the development of the energy crop sector.
"I am pleased that the scheme, which is being run on a pilot basis in 2007, has attracted significant interest from farmers.
"This is a very good outcome for the first year of the scheme and is in line with the provisions made in the Budget," she said.
"There are opportunities for Irish farmers in the newly emerging energy crops sector and while we are starting from a low base, I would expect that over time we can establish a viable and sustainable industry," she said.
Following sustained pressure on the EU, Ireland was allowed pay farmers a grant to establish willow and elephant grass crops which cost in the region of €1,500 an acre to sow.
It is also at least three years before there is any financial return from both crops which are used for pellets to fire specially designed heating units.
The Minister reminded farmers who have applied for establishment grants under the bioenergy scheme to also submit an application for the EU Energy Crops Scheme or on set-aside areas under the Non-Food Set-aside Scheme.
Ms Coughlan pointed out that, under the EU Energy Crops Scheme, farmers receive EU aid of €45 per hectare per year for areas that are sown under energy crops.
This includes miscanthus and willow, but also annual crops, such as oilseed rape.
The Minister reminded farmers that an additional €80 per hectare national top-up will be payable.