Bioenergy & Waste News

Monday 01 February 2010

The RFA claimed that that 2.7% of the UK’s total road transport fuel supply was biofuel

In its first year of operation, the Renewable Transport Fuel Obligation ensured that 2.7% of the UK's total road transport fuel supply was biofuel, according to a report published last week (January 28) by the Renewable Fuels Agency - but questions remain over the sustainability of feedstocks.

The obligation, whereby refiners, importers and any others who supply more than 450,000 litres of fossil-based road transport fuel annually to the UK market are obligated to supply biofuels within their fuel, had set a target of 2.5% for 2008/09.

Suppliers surpassed this level and seem to be on course to meet the Government's aim of ensuring biofuels comprise 5% of UK road transport fuel through the Renewable Transport Fuel Obligation (RTFO) by 2013/14.

Regulator the Renewable Fuels Agency (RFA), which administers the RTFO, added that none of the obligated suppliers paid to "buy-out" of their obligations by paying a fee of 15 pence per litre supplied.

Sustainability

However, environmental performance, also measured under the RTFO, was more varied.

Over two fifths of previous land-use for feedstocks was classified as "unknown," which means biofuels could potentially have been grown on cleared forest or areas of high biodiversity.

Allied with the revelation that only 4% of biofuels imported from abroad are sustainably produced, this raises real questions over the sustainability of UK biofuels.

Friends of the Earth's biofuels campaigner Kenneth Richter said this indicated biofuels were "not the answer to Britain's energy woes."

"In its first annual report the RFA paints a shocking picture of the true impact of biofuels being produced in the UK for use in our cars," he said.

"The UK should scrap its [biofuels] targets and must focus our attention on developing greener transport alternatives to cars, such as fast and affordable rail services and cycling and walking."

Environmental

The Government has set a 30% target for percentage of feedstock meeting the environmental standard, a 40% target for annual green house gas saving of fuel supplied and a 50% target for data reporting.

While currently voluntary, these targets will be mandatory from the end of 2010 when the transport aspect of the EU Renewable Energy Directive comes into force.

Fuel suppliers Topaz and Morgan Stanley failed to meet any of the Government's biofuel sustainability targets and only three companies could reach the 30% target for a qualifying environmental standard. Overall, only 20% of feedstock could meet the sustainability target.

The amount the companies had initially declared varied quite substantially from the amount of data that independent auditors could actually verify. Morgan Stanley, for example, declared around 30% more fuel to meet the environmental standard than could be verified.

As well as companies with poor results, there were several that failed to have their data verified to the RFA's satisfaction. BP, Murco and Prax reported meeting at least one target, but as their data was not properly assured the RFA could not confirm this.

At the other end of the scale, ConocoPhillips, Greenergy and Mabanaft are identified for meeting all three Government targets.

There are also a large number of companies supplying only biofuels and meeting all three sustainability targets - this includes all companies supplying biodiesel from used cooking oil.

The RFA's chief executive, Nick Goodall, said that most companies are unlikely to meet the target for year two either, and called for a "step chance in performance" ahead of the mandatory targets coming into force.

"We have seen many companies meeting the challenge of sourcing their biofuels responsibly. However, too many are lagging behind and dragging overall performance down.

With mandatory sustainability criteria due to be introduced by the end of 2010, companies like Morgan Stanley and Topaz need to make a step change in performance."

Summing up the report, he backed the impact the RTFO has had.

"The RTFO has broadly met the Government's intentions and carbon and sustainability reporting has, as a stepping stone to mandatory sustainability, been a driver of action by suppliers."