Following a meeting with various Government departments, sector companies are calling for urgent talks with ministers to develop a clear plan of action to ensure the continuation of the UK’s existing renewables sector, maintain vital skills for the transition and attract continued investment.
They argue that increasing the amount of renewable fuel that fuel suppliers are obligated to supply to the UK market through a modest increase in the Renewable Transport Fuel Obligation (RTFO) mandate would stimulate demand and put the UK on equal footing with Europe.
This action would require a simple rule change, delivering immediate carbon savings without requiring direct government spending.
Government urged to act now
The industry is urging the Government to prioritise UK production of biofuels, such as biodiesel and bioethanol, that can decarbonise road transport today. This can be achieved by raising existing biofuel mandates under the RTFO, which sets the proportion of renewable fuels blended into road fuels. Although a full review of the RTFO is scheduled for 2026, industry warns action is needed urgently.
Germany and the Netherlands have already raised blending mandates to over 14%, while Spain and Ireland have also stepped up. By contrast, UK policy lags, and by 2030 EU renewable fuel demand will be nearly double that of the UK
Increasing the mandate would not require Government handouts. However, it would help the Government deliver immediate carbon savings from the 31 million passenger cars and 500,000 Heavy Duty Vehicles that are on UK roads today, and will be for many years during the electrification transition. Latest Department for Transport data shows that road transport emissions in 2023 represented 88% of total transport emissions and 29% of UK net domestic emissions.
Tom Reid, CEO of the Renewable Transport Fuel Association – the sector’s trade body, said: “The UK used to be one of the leaders in biofuels for transport in Europe, but now our sector is on the brink. The UK is falling behind Europe and we need urgent action and policy changes to save the biodiesel (and bioethanol) industries. This will save hundreds of jobs in locations where they are needed, as there aren’t new, equivalent employment opportunities in these specific areas if more plants end production.”
“We support the Government’s goal of moving towards greater use of electric vehicles – but that transition will take time, especially for Heavy Duty Vehicles. Whilst these investments are being made, by increasing the use of biofuels, ministers can immediately cut greenhouse gas emissions from all the vehicles that are on the road today and for years to come.”
Adam Traeger, the CEO of Greenergy, the UK’s leading biodiesel producer, said: “Increasing the existing biofuel mandates will deliver a real boost to the sector and help ministers realise their targets of cutting emissions. It will also bring us back in line with other European countries, where biofuels are playing a key role in the energy transition, whilst securing a domestic industry and highly skilled domestic jobs. But this needs to become a priority now.”
Joe Kenny, CEO of Olleco, UK biodiesel producer and used cooking oil collector, adds: “For years, the UK has collected and processed domestic waste, converting it into biofuels to be used on our roads. As other countries ramp up their ambitions and enhance policy support, an increasing volume of this waste is now being exported to overseas producers of road and aviation fuels – a missed opportunity to strengthen investment in UK-based production and the domestic circular economy.”
Industry at risk
Louise Calviou, CEO of Argent Energy, one of the UK’s biodiesel producers, said: “The demand for renewable fuels is driven by Government policy. Whilst the use of biodiesel is one of the most cost-efficient and easiest ways to achieve reductions in transport emissions, that does not change the fundamental truth – we need government to ensure the demand is there.”
“The current UK policy does not do that and so four of the seven biofuel factories in the UK have closed or are planning to close, including Argent’s biodiesel plant in Motherwell. We are asking ministers to show with actions that they want continued investment in renewable fuel technology, assets and skills in the UK.”
The call for action comes four weeks after Greenergy announced that it planned to end biodiesel production at its Immingham plant in Lincolnshire. Last year, Argent Energy was forced to close its biodiesel plant in Motherwell, Scotland.
Without swift action, the UK risks losing a domestic industry that underpins both skilled jobs and fuel security.
These risks — and the wider policy failures behind them — are explored in-depth in the September issue of Fuel Oil News. Don’t miss out – subscribe here.
Image provided by Greenergy