Greenergy, a UK independent supplier of low emission fuels, is calling on the UK ...

Greenergy, a UK independent supplier of low emission fuels, is calling on the UK Chancellor of the Exchequer to support the development of the UK biodiesel market in response to rising consumer demand by introducing a targeted duty incentive to promote blended biodiesels. Blended biodiesel, containing 5% biodiesel and 95% ultra low sulphur diesel, not only meets the warranty requirements of all major vehicle manufacturers but also delivers improved environmental performance when compared to pure biodiesel, states Greenergy. The company recommends that the government introduce a duty rate for 5% biodiesel blends set at 1.4 p/l below the duty on ultra low sulphur diesel - the level at which it believes the correct economic conditions would exist to deliver a fully fledged domestic biodiesel marketplace. The current duty for biodiesel is ‘insufficient to cover the costs of producing quality-tested biodiesel’, states the Greenergy. ‘As a result it has promoted production of low-quality biodiesel by small operators - many without the capacity, or expertise, to produce product of a standard acceptable to forecourt retailers, the motor industry and consumers.’ ‘By making the production of blended biodiesel commercially viable, the government would bring onboard the mainstream suppliers who have the network capacity to make biodiesel blends available to all,’ comments the fuel supplier. ‘Maintaining existing fuel duty incentives on pure biodiesel would also allow small producers to continue to supply end users, or to supply biodiesel as a feedstock for further processing and blending by the mainstream fuels industry.’ Greenergy has also called for the UK Government to introduce an objective means of evaluating the emissions impact of various low carbon fuels, the sustainability of the source, and the impact of different feedstocks and technologies on the fuels produced. It proposes using Greenergy’s Carbon-Certification process as a basis, which would enable the government to determine the cost-benefit ratio of its duty incentives, and to set and manage a coherent low-carbon transport strategy. Greenergy reports that it is working with the UK farming community to establish the supply of ‘home-grown’ biodiesel feedstock (eg rapeseed), essential to the development of a sustainable UK market. This has led to the issue of ‘Field to Forecourt’ contracts covering 20,000 hectares of rapeseed, enough to produce over 25mn litres of pure biodiesel. All of these crops will be Carbon-Certified®, guaranteeing the whole-of-life greenhouse gas emission reduction secured by users of the resulting biodiesel.