Renewable Transport Fuel Obligation: proposed changes for 2017

Mark Chesworth, Managing Director at Vivergo Fuels, said: “We welcome the Government consulting on this matter and the recommendation to set the Renewable Transport Fuel Obligation (RTFO) overall obligation level at 9.75% for 2020 and beyond. E10 – a 10% blend of bioethanol in petrol – is the cheapest, simplest and most practical solution to help meet this target.

“Transport represents 24% of total greenhouse gas emissions, higher than any other sector in the UK economy. The introduction of E10 would be the carbon reduction equivalent of taking 700,000 cars off UK roads. It would also bring certainty to a vital British industry and UK investment, boosting British business, jobs, farming and fuel security at a crucial time.

“We are however disappointed that the Government appears to be leaning towards a low crop cap which would limit the future flexibility and competitiveness of the industry as well as risking a vital market for British farmers. The current European-wide recommendation is seven per cent and yet the Government’s preferred option would give us the lowest cap in the continent.

“We also note the consultation’s focus on advanced biofuels and would stress that existing biofuels producers are in the best position to invest in research and development projects, but require the investor certainty and stability from Government to enable this.”