Monday 5 December 2016

Government proposals ‘risk £1bn of fuel crop investments’

New government proposals could risk £1 billion of fuel crop investments.

The Department of Transport (DfT) has published a consultation on the UK’s Renewable Transport Fuels Obligation, which discusses long term renewable transport targets.

According to the Renewable Energy Association (REA), proposals to cap fuel crops to below EU levels could undermine existing UK biofuel plants and the supply chain.

However, some groups such as the Green Gas Certification Scheme were happy with the news. They said the introduction of new sub-targets for development fuels such as biomethane meant fuel derived from food and other organic wastes could soon be used to decarbonise heavy vehicles.

James Court, Head of Policy & External Affairs at the REA, disagreed that the move was a step forward. He said: "Whilst it is positive that the industry will now have some long sought after policy certainty, the proposed indiscriminate capping of fuel crops could condemn over a £1 billion of assets of our members.

"The move to include a new sub-target for biomethane, hydrogen and aviation fuels is welcome but the truth is that the targets are disappointingly low and will mean that over 90% of our fuel use for decades to come will come from polluting fossil sources."