Greenergy is calling on the Chancellor to support the development of the UK biodiesel market by introducing a targeted duty incentive to promote blended biodiesels.
The company recommends that the government introduce a duty rate for five per cent biodiesel blends set at 1.4 pence per litre below the duty on ultra low sulphur diesel – the level at which they believe the correct economic
conditions would exist to deliver a fully fledged domestic biodiesel
Andrew Owens, chief executive of Greenergy, said: “The lack of government direction has left the way open for an unregulated cottage industry to develop, delivering low-cost, poor-quality product without proven environmental benefits. This threatens the future of the market by putting at risk biodiesel’s credibility with consumers and the motoring industry alike. It is time for the Government to take action.”
Blended biodiesel, containing five per cent biodiesel and 95 per cent 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, says the company.
By making the production of blended biodiesel commercially viable,
the government would bring on-board the mainstream suppliers who have the network capacity to make biodiesel blends available to all.
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 also asks that the government 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.