Biodiesel

UK Renewable Fuels Agency First Interim Quarterly Report Shows Biofuels Amount and Carbon Reduction Both Greater Than Targeted

Date Posted: October 7, 2008

The Renewable Fuels Agency (RFA) releases October 10 its first interim quarterly report which includes disclosure of company performance on the supply of biofuels under the Renewable Transport Fuel Obligation (RTFO).

In the year to April 2009, fossil fuel companies were obliged to supply 2.5% biofuel in UK road fuel.

Biofuels accounted for 2.61% in the first quarter.

More biodiesel (84%) has been supplied than bioethanol (16%).

The target for sustainability (i.e. meeting a qualifying environmental standard) is 30% over the reporting year.

Currently, 20% of biofuels meet these standards.

97% of the fuel reported as coming from UK feedstocks met environmental sustainability standards.

The carbon reduction achieved by the use of biofuels (44%) during the first three months of the obligation is greater than the 40% target set by the Government for the first year of the RTFO.

The savings reported exclude any emissions from indirect changes in land-use as considered in the Agency's 'Gallagher Review' (July 2008).

The Agency has recommended that indirect effects are included in future sustainability reporting and is working with the Government and experts to identify a way to accurately reflect this.

The Government has also set a target that companies should report 50% of the data required by the RFA in four categories - feedstock, country of origin, sustainability standard met and land-use change.

In this quarter, 61% of data was reported.

The feedstock is known for 95% of biofuels.

Both the feedstock and country of origin are known for 72%.

The most widely reported biodiesel feedstock was American soy (25% of all biodiesel). The most widely used bioethanol feedstock was Brazilian sugarcane (74% of all bioethanol).

The RFA also makes, for the first time, preliminary observations on the performance of the UK's major fuel suppliers.

Almost all are either achieving or are close to achieving carbon savings in line with the Government's target for 2008-09.

Harvest Energy, Greenergy, Mabanaft and Shell exceed the target.

Although ConocoPhillips report a negative carbon saving, and Chevron report very low carbon savings, these may be revised during the auditing process.

Harvest Energy and Mabanaft are exceeding the current sustainability target.

However, several companies (BP, Esso, Murco, Prax and Topaz) have so far failed to report any biofuels as meeting the qualifying environmental standard.

Of these, Prax and Topaz have also failed to report the origin of their biofuels.

Esso, Petroplus, Prax and Topaz are currently failing to meet any of the three targets set by Government.

Nick Goodall, Chief Executive Officer of the Office of the Renewable Fuels Agency (RFA) commented, "These early figures demonstrate that some companies have risen to the challenge of sourcing biofuels that meet good sustainability standards."

Full datasets for the information referred to in this news release, as provided for within the constraints of the RTFO order, are available at the RFA website.

For more information, call 020 7944 8454.

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