Biofuel in the United Kingdom

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The biofuel sector in the United Kingdom, under the auspices of the government's Renewable Transport Fuel Obligation (RTFO), has been progressing towards enhanced sustainable energy solutions. Marking a significant stride in this direction was the government's endorsement and introduction of E10 biofuel in late 2021. This fuel blend, consisting of 90% regular unleaded gasoline and 10% ethanol, was introduced as part of an initiative to reduce greenhouse gas emissions (GHG) from transport fuels. The introduction of E10 led to a shift in the renewable fuel landscape in the UK, particularly influencing an increase in the utilization of non-waste feedstocks. In the year 2022, the biofuel sector, as per government reports, achieved a reduction in GHG emissions by 82% in comparison to traditional fossil fuels [1] .

Contents

General

Biodiesel is rapidly becoming more common in a number of developed countries and the environmental effects of using biodiesel either as a blend such as B20 (20% biodiesel and 80% petrodiesel) or as a straight fuel stock may be different in various countries. This is because the allowable amounts of sulphur and other compounds vary from country to country. Additionally, the average temperature in a country will dictate the amount of biodiesel that can be blended into the fuel supply before the cold filter plugging point (the temperature at which the fluid will block a 45  µm filter) renders the fuel unusable. The national annex of BS EN 14214 specifies a maximum CFPP for B100 biodiesel of -15 °C in the winter (16 November - 15 March inclusive) and -5 °C for the rest of the year. As such, the benefits and disadvantages of biodiesel will vary from those in the United Kingdom.

Environmental benefits

Graph of UK figures for the Carbon Intensity of Biodiesels and fossil fuels. It assumes biodiesel is transported to the UK to be burnt. BiodieselsUK.jpg
Graph of UK figures for the Carbon Intensity of Biodiesels and fossil fuels. It assumes biodiesel is transported to the UK to be burnt.

Making and burning biodiesel contributes to atmospheric carbon dioxide to a smaller extent than burning fossil fuels. The calculation of exactly how much carbon dioxide is produced is a complex and inexact process, and is highly dependent on the method by which the biofuel is produced. For example, including the emissions associated with land-use change (LUC) substantially increases the carbon cost of biodiesel. [3] The graph on the right shows the figures calculated by the UK Government for the Renewable transport fuel obligation. [4]

Taxation

In the UK, drivers using SVO/PPO have in the past been prosecuted for failure to pay duty to Her Majesty's Revenue and Customs. The rate of taxation on SVO was originally set at a reduced rate of 27.1p per litre, but in late 2005, HMRC started to enforce the full diesel excise rate of 47.2p per litre.

HMRC argued that SVOs/PPOs on the market from small producers did not meet the official definition of "biodiesel" in Section 2AA of The Hydrocarbon Oil Duties Act 1979 (HODA), and consequently was merely a "fuel substitute" chargeable at the normal diesel rate. Such a policy seemed to contradict the UK Government's commitments to the Kyoto Protocol and to many EU directives and had many consequences, including an attempt to make the increase retroactive, with one organization being presented with a £16,000 back tax bill. This change in the rate of excise duty effectively removed any commercial incentive to use SVO/PPO, regardless of its desirability on environmental grounds; unless waste vegetable oil can be obtained free of charge, the combined price of SVO/PPO and taxation for its use usually exceeded the price of mineral diesel. HMRC's interpretation is widely challenged by the SVO/PPO industry and the UK pure Plant Oil Association (UKPPOA) was formed to represent the interests of people using vegetable oil as fuel and to lobby parliament. [5]

Following a review in late 2006, [6] HM Revenue & Customs has announced changes regarding the administration and collection of excise duty of biofuels and other fuel substitutes (Veg Oil). The changes came into effect on 30 June 2007. There is no longer a requirement to register to pay duty on vegetable oil used as road fuel for those who "produce" or use less than 2,500 litres per year. [7] For those producing over this threshold the biodiesel rate now applies. From 1 June 2014 Production or Usage of Any Biofuel (inc SVO, Bio-Diesel etc.), Substitute or Additive is limited to 2500 litres. You must be registered to use or produce greater than 2500 L of Biofuel, Substitutes or Additives. Records must be kept for all production volumes and methodology regardless of quantities produced. [8]

See also

Related Research Articles

<span class="mw-page-title-main">Biofuel</span> Type of biological fuel produced from biomass from which energy is derived

Biofuel is a fuel that is produced over a short period from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels, such as oil. Biofuel can be produced from plants or agricultural, domestic, or industrial biowaste. Biofuels are mostly used for transportation but can also be used for heating and electricity. Biofuels are regarded as a renewable energy source. However, the use of biofuel has been controversial because of the several disadvantages associated with the use of it. These include for example : the "food vs fuel" debate, biofuel production methods being sustainable or not, leading to deforestation and loss of biodiversity or not.

<span class="mw-page-title-main">Biodiesel</span> Fuel made from vegetable oils or animal fats

Biodiesel is a form of diesel fuel derived from plants or animals and consisting of long-chain fatty acid esters. It is typically made from fats.

A fuel tax is an excise tax imposed on the sale of fuel. In most countries the fuel tax is imposed on fuels which are intended for transportation. Fuel tax receipts are often dedicated or hypothecated to transportation projects, in which case the fuel tax can be considered a user fee. In other countries, the fuel tax is a source of general revenue. Sometimes, a fuel tax is used as an ecotax, to promote ecological sustainability. Fuel taxes are often considered by government agencies such as the Internal Revenue Service as regressive taxes.

Vegetable oil can be used as an alternative fuel in diesel engines and in heating oil burners. When vegetable oil is used directly as a fuel, in either modified or unmodified equipment, it is referred to as straight vegetable oil (SVO) or pure plant oil (PPO). Conventional diesel engines can be modified to help ensure that the viscosity of the vegetable oil is low enough to allow proper atomization of the fuel. This prevents incomplete combustion, which would damage the engine by causing a build-up of carbon. Straight vegetable oil can also be blended with conventional diesel or processed into biodiesel, HVO or bioliquids for use under a wider range of conditions.

<span class="mw-page-title-main">Biodiesel by region</span>

This article describes the use and availability of biodiesel in various countries around the world.

<span class="mw-page-title-main">Hydrocarbon Oil Duty</span> Fuel tax imposed on road motor vehicles in UK

Hydrocarbon Oil Duty is a fuel tax levied on some fuels used by most road motor vehicles in the United Kingdom; with exceptions for local bus services, some farm and construction vehicles and aviation, which pay reduced or no fuel duty.

Neste MY Renewable Diesel is a vegetable oil refining fuel production process commercialized by the Finnish oil and refining company Neste. Whether as an admixture or in its pure form, Neste MY Renewable Diesel is able to supplement or partially replace diesel fuel without problems. Neste MY Renewable Diesel guarantees that every gallon sold meets ASTM D975 and EN 15940 specifications in compliance with OEM standards.

Various energy conservation measures are taken in the United Kingdom.

Renewable Fuels are fuels produced from renewable resources. Examples include: biofuels, Hydrogen fuel, and fully synthetic fuel produced from ambient carbon dioxide and water. This is in contrast to non-renewable fuels such as natural gas, LPG (propane), petroleum and other fossil fuels and nuclear energy. Renewable fuels can include fuels that are synthesized from renewable energy sources, such as wind and solar. Renewable fuels have gained in popularity due to their sustainability, low contributions to the carbon cycle, and in some cases lower amounts of greenhouse gases. The geo-political ramifications of these fuels are also of interest, particularly to industrialized economies which desire independence from Middle Eastern oil.

<span class="mw-page-title-main">Renewable Transport Fuel Obligation</span> UK requirement on fuel suppliers

The Renewable Transport Fuel Obligation (RTFO) in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 percent of all road vehicle fuel is supplied from sustainable renewable sources by 2010. The Government intends to set variable targets for the level of carbon and sustainability performance expected from all transport fuel suppliers claiming certificates for biofuels in the early years of the RTFO.

Biofuel is fuel that is produced from organic matter (biomass), including plant materials and animal waste. It is considered a renewable source of energy that can assist in reducing carbon emissions. The two main types of biofuel currently being produced in Australia are biodiesel and bioethanol, used as replacements for diesel and petrol (gasoline) respectively. As of 2017 Australia is a relatively small producer of biofuels, accounting for 0.2% of world bioethanol production and 0.1% of world biodiesel production.

<span class="mw-page-title-main">Vegetable oils as alternative energy</span> Fuel made from plants

Vegetable oils are increasingly used as a substitute for fossil fuels. Vegetable oils are the basis of biodiesel, which can be used like conventional diesel. Some vegetable oil blends are used in unmodified vehicles, but straight vegetable oil often needs specially prepared vehicles which have a method of heating the oil to reduce its viscosity and surface tension, sometimes specially made injector nozzles, increased injection pressure and stronger glow-plugs, in addition to fuel pre-heating is used. Another alternative is vegetable oil refining.

<span class="mw-page-title-main">Algae fuel</span> Use of algae as a source of energy-rich oils

Algae fuel, algal biofuel, or algal oil is an alternative to liquid fossil fuels that uses algae as its source of energy-rich oils. Also, algae fuels are an alternative to commonly known biofuel sources, such as corn and sugarcane. When made from seaweed (macroalgae) it can be known as seaweed fuel or seaweed oil.

Hydrotreated vegetable oil (HVO) is a biofuel made by the hydrocracking or hydrogenation of vegetable oil. Hydrocracking breaks big molecules into smaller ones using hydrogen while hydrogenation adds hydrogen to molecules. These methods can be used to create substitutes for gasoline, diesel, propane, kerosene and other chemical feedstock. Diesel fuel produced from these sources is known as green diesel or renewable diesel.

Biogasoline is a type of gasoline produced from biomass such as algae. Like traditionally produced gasoline, it is made up of hydrocarbons with 6 (hexane) to 12 (dodecane) carbon atoms per molecule and can be used in internal combustion engines. However, unlike traditional gasoline/petroleum based fuels, which are mainly composed from oil, biogasolines are made from plants such as beets and sugarcane or cellulosic biomass- substances normally referred to as plant waste.

<span class="mw-page-title-main">Sustainable biofuel</span> Non-fossil-based sustainable production

Sustainable biofuel is biofuel produced in a sustainable manner. It is not based on petroleum or other fossil fuels. It includes not using plants that are used for food stuff to produce the fuel thus disrupting the world's food supply.

<span class="mw-page-title-main">Biofuels by region</span> Use of biofuel as energy source across the world

The use of biofuels varies by region. The world leaders in biofuel development and use are Brazil, United States, France, Sweden and Germany.

United States policy in regard to biofuels, such as ethanol fuel and biodiesel, began in the early 1990s as the government began looking more intensely at biofuels as a way to reduce dependence on foreign oil and increase the nation's overall sustainability. Since then, biofuel policies have been refined, focused on getting the most efficient fuels commercially available, creating fuels that can compete with petroleum-based fuels, and ensuring that the agricultural industry can support and sustain the use of biofuels.

<span class="mw-page-title-main">Bioliquids</span>

Bioliquids are liquid fuels made from biomass for energy purposes other than transport.

<span class="mw-page-title-main">Global Clean Energy Holdings</span>

Global Clean Energy Holdings (OTC:GCEH) is a Southern California-based renewable energy company with interests in the production and commercialization of non-food-based feedstocks used for the production of biofuels, biomass, and renewable chemicals. It was founded in 2007.

References

  1. "Renewable fuel statistics 2022: final report". GOV.UK. Retrieved 2024-01-13.
  2. Graph derived from information found in UK government document. Carbon and Sustainability Reporting Within the Renewable Transport Fuel Obligation Archived 2016-11-24 at the UK Government Web Archive
  3. "Globiom: The basis for biofuel policy post-2020 | Transport & Environment". 25 April 2016.
  4. Carbon and Sustainability Reporting Within the Renewable Transport Fuel Obligation Archived 2016-11-24 at the UK Government Web Archive
  5. "Fuel-Duty and VAT on Pure Vegetable Oil". Biomotors.co.uk. Archived from the original on 2007-05-07. Retrieved 2007-05-04.
  6. HM Revenue & Customs (December 2006). "Review of the definition of Biodiesel in Hydrocarbon Oil Duties Act 1979: Summary of Responses and Findings" (PDF). Archived from the original (PDF) on 2007-09-27. Retrieved 2007-05-04.
  7. "Revenue & Customs Brief 43/07". HM Revenue & Customs. Archived from the original on 2007-07-03. Retrieved 2007-06-24.
  8. "HMRC Excise Notice 179e: Biofuels and Other Fuel Substitutes". HM Revenue & Customs . Retrieved 2014-12-30.