Jonathan Fry: Action to Make Transport Fuels Greener

>> Listen to this Article or Add to Podcast

Transport Secretary Alistair Darling today announced new measures to make transport fuels greener by requiring 5% of all UK fuel sold on UK forecourts to come from a renewable source by 2010.

The move - known as a Renewable Transport Fuels Obligation - was announced at the Environmentally Friendly Vehicles Conference in Birmingham, where representatives from international Governments and industry met to discuss ways to promote greener vehicles.

Alistair Darling said: "Taking action to tackle climate change is essential. The Renewable Transport Fuels Obligation I am proposing today is predicted to save around 1 million tonnes of carbon dioxide emissions in 2010 - the equivalent of taking 1 million cars off the road. Carbon savings could also increase in future years. This will help reduce the impact of transport on climate change, and bring environmental benefits for us all."

"I am determined that transport should play its part in addressing the threat of climate change. Making vehicles more efficient and investing in public transport are important aspects of our strategy, but renewable fuels are equally important. This Obligation is vital in continuing to promote a shift towards cleaner, low carbon road transport."

Drivers filling up at petrol stations will see very little difference, as biofuels do not change the performance of cars.

The Government also published the results of a feasibility study today, setting out how the obligation will work. It will require the major oil companies and importers to ensure that a growing proportion of their fuel sales are from a renewable source. By 2010, that proportion must be 5%, which will mean a 20 fold increase in biofuels sales over today's levels.

Today most biofuels come from crops like oilseed rape and wheat, which can be mixed with petrol and diesel and run in ordinary cars. In the future we could see more advanced biofuels made from waste and possibly even renewable hydrogen.

To ensure that biofuels are sourced sustainably, the Government proposes to develop a carbon and sustainability assurance scheme as part of the obligation. Obligated companies would be required to report on the level of carbon savings achieved and on the sustainability of their supplies.

The Government will consult on the detail of how the Obligation will work in due course. This will cover issues like what level the obligation should be set at in future years and how long each obligation period will last.

Alistair Darling also highlighted the Government's intention to investigate further the potential for hydrogen fuel in the UK. He said:

"In the longer term, we need to look seriously at the fuels we are using to power our transport - which is why we are piloting the development of hydrogen fuelled transport.

"A lot of work is being done in this field, for example, the hydrogen highway in California.

"As a next step, we need to have a hard look here in the UK at the practical steps we would need to take to build a hydrogen infrastructure."

Web Site:
Department for Transport Website

Research Material:

1. The Government currently supports biofuels through a 20 pence per litre duty incentive. This has stimulated sales of around 10 million litres a month - about 0.25% of all road fuel sales. The Government announced that it would consider an obligation last year to answer industry calls for longer term certainty.

2. The RTFO will work through a system of certification. Oil companies will receive certificates from an administrator to demonstrate how much biofuel it has sold. If the company sells more than its 5% obligation, it would then be able to sell those certificates to other companies who need more to meet the obligation.

3. The primary powers that would enable the Government to introduce an obligation are contained in the Energy Act 2004.

4. The feasibility study can be obtained in electronic format from the DfT website (www.dft.gov.uk)

Related Articles: