Out-Law / Your Daily Need-To-Know

UK government compels transport fuel suppliers to increase biofuel component

18 Apr 2018, 11:28 am

The UK government has introduced new regulations designed to double the use of renewable fuel in the transport sector, with the aim of cutting costs and lowering carbon emissions.

The changes to the Renewable Transport Fuel Obligation (RTFO) will force large suppliers of transport fuel to ensure they include at least 12.4% biofuel in the mix by 2032.

The volume target for biofuel is rising from 4.75% currently up to 9.75% by 2020, and then up to the 2032 target.

The revised RTFO also sets a new target for the inclusion of waste-based renewable fuel within supplies, starting at just 0.1% of the volume of fuel supplied but rising to 2.8% by 2032. The government has also set a “sustainable” target for crop biofuels, with a maximum cap of 4% of fuel in 2019 dropping to 2% by 2032.

For the first time the RTFO scheme will include renewable aviation fuels and renewable fuels of non-biological origin.

The changes apply to transport fuel owners supplying at least 450,000 litres a year.

The RTFO also promotes the development of technology which will turn waste into low-carbon fuel. The new targets are in addition to £22 million of government funding which is already available for similar development of waste-based fuels for aviation and freight.

Transport minister Jesse Norman said the new regulations would double the use of renewable fuel and reduce the UK’s reliance on imported diesel, as a result increasing the carbon emissions savings from the RTFO scheme.

International Airline Group chief executive Willie Walsh said the provision of sustainable fuel for aircraft with the same economic incentives given to road vehicles was “long overdue”.

“These incentives have enabled alternative fuel sources to be developed for cars and lorries, while aviation has traditionally been heavily dependent on fossil fuels. This government initiative will support our plans to build Europe’s first waste to jet biofuel plant in Britain, creating UK jobs and growth,” Walsh said.

The changes were approved by parliament in March and the new regulations are amendments to the Renewable Transport Fuel Obligations (RTFO) Order 2007 and the Motor Fuel (Road Vehicle and Mobile Machinery) Greenhouse Gas Emissions Reporting Regulations 2012.