Renewable Transport Fuel Obligation (RTFO) feasibility report
In the 2004 Pre-Budget Report the Government announced that it would look at the possibility of a Renewable Transport Fuel Obligation (RTFO), along the lines of the Renewables Obligation which exists in the power generation sector.
An RTFO would require transport fuel suppliers to ensure that a percentage of their sales in the UK were from a renewable source. Use of biofuels would reduce the transport sector's contribution to climate change. They can also be mixed with more conventional fuels and run in unmodified cars at low blends. This study finds that an RTFO could be introduced by April 2008. The benefits in 2010 would be around 1 million tonnes of carbon per annum at 5% of all road fuel sales from the transport sector - between 2 & 3 per cent of transport emissions.
By 2020 "second generation" biofuels using lower value feedstocks such as straw and even organic waste materials should become available. Advanced biofuels technologies could also provide a stepping stone to renewably produced hydrogen.
The introduction of an RTFO would give industry more certainty to invest in biofuel production for the longer term, stimulating innovation and advances in technology. And a growing proportion of renewable transport fuels in our economy would also contribute to the UK's diversity and security of energy supply.
It is estimated that by 2050 the UK could produce as much as one third of its transport energy needs from biomass, but imports will play an important part too, and an RTFO could help provide a valuable export market for the developing world. Brazil is already a market leader in bioethanol (a petrol extender) production, and the prospects for production in Africa are already being explored. However, sustainability of supplies will be an important issue. No decisions have been taken as to precisely how an RTFO would operate. This report sets out a possible design and makes a series of recommendations following work with Government departments, the devolved administrations, stakeholders and consultants. These detailed design aspects will be the subject of thorough consultation.
Read the full report www.dft.gov.uk/stellent/groups/dft_roads/documents/divisionhomepage/610328.hcsp
