EERA_Paper_2007

1
Item 3
Report to the East of England Regional Assembly
Environment and Resources Panel 6th
June 2007
Subject: Transport – Development of Alternative Fuels
Report by: EERA Secretariat and Natural England
Purpose
To inform the Panel on the current status of the biofuel industry in the East of
England and make recommendations for future action by the Panel.
Recommendation
It is recommended that the panel:
1. Note the report on biofuels in Annex 1 prepared by Natural England with
other regional partners.
2. Agree to the recommended actions to promote the industry and use of
biofuels in the region.
1. Introduction
1.1 In December 2006 the Environment and Resources Panel (ERP) considered
a series of recommendations on priority areas for further work to look at
environmental aspects of transport. Three areas were agreed where it was
felt there were long-term opportunities to influence the transport agenda.
Natural England has agreed to lead on one of these three areas:
Development of alternative fuels1
, and has worked closely with Renewables
East and EERA to produce the report in Annex 1.
1.2 The aims of this report are:
 To provide information on the current status of the biofuel industry at an
international, European, national and regional level;
 To advise EERA on the scope for the use of biofuels in the East of
England region;
 To discuss the benefits and impacts of biofuels on carbon emissions,
natural resources, biodiversity, landscape, and to show how their use can
contribute to the forthcoming review of the Regional Spatial Strategy,
Regional Economic Strategy and the emerging regional Climate Change
Action Plan ;
 To support EERA’s contribution to future regional work on the appropriate
role of biofuels in the East of England; and
 Provide recommendations on what role the Panel and EERA might play
with regards to biofuels and transport.
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The others being (1) more efficient use of the current inter-urban network (including need for travel,
use of road pricing/taxation and the need for inclusive policies) and (2) freight use of the rail network
(including current capacity and barriers/impediments to future growth).

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1.3 The full biofuel report is in Annex 1 and the main points have been
summarised in Section 2 of this cover paper. The summary is followed by
three recommended actions for the pane in Section 3.
1.4 The draft report was discussed at the RETAG meeting on 23rd
April 2007, and
has since circulated to a number of key partners including Renewables East,
the National Farmers Union, East of England Energy Group, British Sugar for
their comments before submission to the Panel on 6th
. A number of these
organisations responded, with their comments have been incorporated in the
main report where appropriate.
2. Key points from the biofuel report
2.1 CO2 emissions from transport are likely to increase due to the scale of
proposed growth in the region and nationally. Road transport is estimated to
be responsible for a greater percentage of CO2 emissions in the East of
England compared to the national average.
2.2 There are four principal methods for reducing our dependency on fossil fuels
and reducing CO2 emissions from transport:
i. a shift towards vehicles that are more efficient;
ii. replacement of fossil fuels with alternative fuels including biofuels;
iii. to make the transport system as a whole more efficient by ensuring
that people and goods are transported in a way that minimises fuel
use; and
iv. reducing the need to travel.
2.3 Biofuels (biomethane, biodiesel and bioethanol) are an alternative to
conventional oil-based fuels (petrol, diesel, CNG and LNG), and could play a
major role in replacing fossil fuels with alternative fuels and reducing transport
CO2 emissions by up to 50%. However, the extent that this is practical is
complex and to some extent debatable. There are potential costs as well as
benefits in broader environmental terms both in the UK and overseas.
2.4 The major rationale for biofuels is their potential reduction of CO2 emissions.
The savings in CO2 emissions depends upon the crop, where and how it is
grown, and to some extent the distance between where the crop is processed
into biofuel and used. A key measure for this is Net Energy Balance (NEB)
which will take into account energy consumption from the use of
agrochemicals and transport during production. The best NEB is obtained
from biomethane produced from waste; bioethanol from sugar beet in Brazil
produces the best NEB from crop derived biofuel. There is concern that some
biofuels, e.g. from soy production in the US, can have a negative NEB due to
the high levels of agrochemical inputs and fuel used.
2.5 Other serious concerns come with potential loss of major habitats and
biodiversity in a number of African, Asian and South American countries as
crops for biofuel production are intensified to meet the increased demands as
a result of policy shifts in the EU and US. There are also concerns that a
major expansion in world biofuel production could increase world food prices,
as competition for land use increases commodity prices. Closer to home,
there is apprehension over biofuel crops being grown at the expense of food
crops, and the potential risks to landscape and biodiversity. However, the
crops grown for biofuels in the UK (wheat, oilseed rape and sugar beet) are
already common, so impacts on biodiversity, landscape, the historic
environment or on natural resources are unlikely to differ greatly from existing

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production of these crops for food production. Moreover, where biomethane is
produced from waste, impacts on landscape and biodiversity are negligible.
2.6 Establishing sustainability standards for biofuel production would help ensure
that any negative implications were addressed. The Government has been
heavily criticised by environmental groups, however, for not implementing
minimum sustainability standards with the implementation of the Renewable
Transport Fuel Obligation (RTFO) in 2008. The UK Government have,
however, been pushing for the development of EU-wide standards by the
European Commission, but these are unlikely to be implemented until the
second phase of the RTFO in 2010.
2.7 In the UK, standard petrol and diesel vehicles can run on fuel with up to 5%
biodiesel or bioethanol content, the maximum allowed by the EU Biofuel
Directive. It is hoped that this will be increased to 10% with the improvement
of biofuel quality standards and the agreement of the automotive industry.
New Flexi-Fuel Vehicles can use any mix up to 85% bioethanol and existing
LNG and CNG cars could use biomethane. By the end of 2005, the UK use of
biofuels was only 0.3% by volume. The most common biofuel in use is
biodiesel, with some bioethanol as E85 (85% bioethanol 15% petrol mix),
however biomethane is not yet commercially available in the UK.
2.8 Although biofuel crops are already being grown in the UK, a current major
constraint on biofuel production is the lack of refining plants. This is slowly
changing and the East of England will be the first to produce bioethanol from
UK grown sugar beet at the Wissington British Sugar plant later this year.
2.9 UK production of biodiesel utilises a combination of imported and home
grown crops (10% of the UK oilseed rape crop), plus a small quantity of
recycled products. Elsewhere in Europe biodiesel is commonly used, making
the EU the world’s largest producer.
2.10 Biogas is produced by anaerobic digestion of organic animal and food wastes
and sewage. It can be upgraded to biomethane for use in vehicles. This is
well established on the continent, but has not taken off in the UK. Biogen UK
is the only commercial biogas plant in the East of England based in
Bedfordshire. It utilises pig slurry and food waste and convert the biogas into
electricity. Biofertiliser is a useable by-product.
2.11 Technical constraints of biofuels include:
 the relative lack of vehicles capable of operating on high levels of biofuels
(e.g. being able to use E85). Although a number of vehicle manufacturers
are beginning to address this, it remains a significant limiting factor.
 There are relatively few filling stations offering biofuels for sale. This is
due to the relatively low rates of demand, and is inextricably linked to the
lack of vehicles on the market capable of using higher blend fuels.
2.12 The growth of a UK biofuel industry would offer a number of economic
benefits including positive impacts on UK job security and creation as new
refineries come on stream (an EEDA study estimated that one 100ktonne
bioethanol plant processing wheat and sugar beet could create 970 jobs), and
the creation of alternative markets for agricultural crops in the UK could
provide a positive stimulus to a generally depressed price regime. As biofuels
are generally more expensive to produce than fossil fuels, the industry is
dependent on public subsidy for economic viability. Biofuel production is

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predicted to become more competitive in the future as oil costs rise due to
diminishing resources.
2.13 Fiscal and policy incentives are used to compensate for the current higher
production cost of biofuels compared to fossil fuels. In the UK there is a 20ppl
rebate on duty biofuels compared to fossil fuels; although there is a debate as
to whether this has been enough to kick-start the UK biofuels industry.
Elsewhere in Europe, the relatively high level of production and use of
biofuels is due to higher level of available incentives and other policy
instruments. The Renewable Transport Fuel Obligation (RTFO) will be
introduced in 2008 as the UK’s mechanism for implementing the European
Fuel Directive (target of 8% by volume biofuel use by 2010), and will ensure a
market for UK biofuels as long as prices are competitive with the global
market. As the obligation increases to higher percentages of biofuels, the
reduction in fuel duty will be phased out. In addition to these measures to
encourage a market for biofuels, Defra offers funding support for growing
wheat and oilseed rape for biofuels (The Single Farm Payment and Energy
Aid).
2.14 Biofuel production would be more cost-effective if the whole plant could be
used, which would also increase the range of feedstock that could be
processed. This second generation of biofuels is under research and
development including at research centres in this region.
2.15 In the East of England, there are a number of significant factors which could
potentially favour a push towards greater biofuel production and use:
 existing agricultural production systems in the region can be used to grow
biofuel crops,
 the location of major research facilities within the region with the potential
to focus on further development of 1st and 2nd generation biofuels,
 existence of emerging biofuel refineries at e.g. Wissington
 proximity to major conventional refineries e.g. in Thames Estuary
 major vehicle manufacturer (Lotus) located in the region and active in
exploring biofuel use
 Renewables East is well established and actively promoting biofuels.
2.16 Conclusions
Biofuels can make a significant contribution to reducing CO2 emissions from
transport, but only as part of an integrated strategy that addresses other
transport issues, notably congestion. Suitable sustainability standards to
ensure reductions in CO2 emissions are achieved without compromising the
landscape, historical environment and biodiversity both in the UK and
internationally. A further factor is the potential effect that increased biofuel
crop production would have on world food prices.
2.17 From the report, a number of areas that require further work influence and
support were identified which are classified under 3 outcomes:
i. Better understanding of the theoretical capacity and limitations of
biofuel production within the East of England;
ii. Raise the profile of biofuels in the region by influencing policy and
increasing public awareness; and
iii. Support for academic and commercial R&D to further improve and
advance biofuels.
3. Recommendations for the Panel.
It is recommended that the work of the Panel focus on the following areas:

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i. Greater recognition and support for the existing expertise within the
region’s research institutes and automotive sector which if harnessed
together could provide significant advances in biofuel development and
utilisation as well as realising economic benefit for the East of England.
There is a potential to generate biogas/biomethane from grown crops as
well as regional domestic, commercial and agricultural residues. As
quantities are not precise more work needs to be done to predict the full
capacity for gas recovery from waste and the economic ‘tipping points’ for
its use in transport rather than power production.
Both areas could also provide indicators as to the best use of land in
providing biofuels and improved crop yields achieved by targeted
breeding.
Renewables East is already considering mechanisms and potential
research by which the opportunities might be achieved
The Panel should endorse support for maximising such potential and offer
to help promote and implement any recommendations that are made as a
result.
ii. To raise the profile of biofuels by encouraging the Public Sector in the
region to use and promote the use of alternative fuels. In this respect,
consideration should be given to developing an information package
explaining the opportunities available to local authorities to encourage the
use of fuel efficient vehicles and the use of alternative fuels in public
sector fleet vehicles. The Panel can also provide regional representation
to the Government for assistance in overcoming barriers that are
encountered when trying to convert to alternative fuels (eg BSOG).
iii. To encourage the development and implementation of appropriate
sustainability standards for biofuels. A recent and current consultation
have addressed this issue:
 DfT consultation on the Renewable Transport Fuel Obligation Order,
to which EERA recently submitted a response (deadline 17th
May);
and
 European Commission consultation on biofuel issues in the new
legislation on the promotion of renewable energy:
http://ec.europa.eu/energy/res/consultation/biofuels_en.htm. The
deadline of this consultation was recently extended to 18th
June, so
comments from the Panels discussion on biofuels can be used to form
a response.
Although the UK Government has been campaigning for EU-wide
standards, the Panel should engage in the process of developing these
standards to ensure they are appropriate to protect against adverse
environmental and social impacts, and that the standards are used to
increase the awareness about the real facts and potential benefits of
biofuels.
Contact: Jo Worley 01284 729 431 joanna.worley@eera.gov.uk

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Annex 1:
Biofuels Report for the EERA
Environment and Resources Panel
April 2007
Report written by
Dr Mary Dimambro (Natural England)
With input from
Joanna Worley (EERA)
Richard Parker (Renewables East)
David Vose (Natural England)
Jane Sellers (EERA)

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Contents
Contents .................................................................................................................. 2
1. Introduction ......................................................................................................... 4
2. Biofuels and the environment ............................................................................ 4
2.1 Biofuels and carbon emissions .................................................................... 4
2.2 Environmental benefits of biofuels ............................................................... 5
Box 1: Potential advantages of biofuels ........................................................ 5
Table 1. Net energy balance of biofuels from selected crops ...................... 6
3. Biofuel types........................................................................................................ 6
Box 2: Biodiesel............................................................................................... 6
Box 3: Bioethanol............................................................................................ 7
Box 4: Biogas and biomethane ...................................................................... 8
4. Biofuel regulatory policy .................................................................................... 9
4.1 Policy........................................................................................................... 9
4.11 EU Policy................................................................................................... 9
4.12 UK Policy................................................................................................ 10
Box 5: Fuel duty incentives – biofuel rebate debate................................... 11
Table 2. Comparison of biofuel content by volume and by energy content
........................................................................................................................ 12
4.13 Regional Policy...................................................................................... 12
5 Biofuel crops ...................................................................................................... 13
5.1 Agriculture ............................................................................................... 13
5.2 Environmental impacts of UK biofuel crops................................................ 14
Box 6: Oilseed rape....................................................................................... 15
Box 7. Wheat.................................................................................................. 16
Box 8. Sugar beet .......................................................................................... 16
Market price of biofuel crops........................................................................ 17
Box 9. EU Sugar reforms .............................................................................. 17
Other biofuel crops ....................................................................................... 17
Box 10: Environmental impacts of biofuel production from soy and palm
oil.................................................................................................................... 18
6 Biofuel production ............................................................................................ 18
6.1 Biodiesel Production in the EU .................................................................. 18
6.2 Biodiesel production in the UK............................................................... 19
Box 11. Cooking oil recycling regulations................................................... 20
6.4 Bioethanol production................................................................................ 20
6.6 Biomethane production.............................................................................. 21
Box 12. Gas fuels for vehicles...................................................................... 22
7 Biofuel use.......................................................................................................... 23
7.1 Blending with petrochemicals.................................................................... 23
7.2 Filling stations............................................................................................. 23
7.3 Vehicles........................................................................................................ 24
8 Research............................................................................................................. 25
9. Conclusion......................................................................................................... 25
Table 3. Summary biofuel issues ................................................................. 25
10. Outcomes and recommended actions for the EERA Environment and
Resources Panel ................................................................................................... 26

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Abbreviations
AD Anaerobic digestion
BBSRC Biological Sciences Research Council
CAP Common Agricultural Policy
CEN European Committee for Standardization
CHP Combined heat and power
CNG Compressed Natural Gas
CO2 Carbon dioxide
CONCAWE Conservation of Clean Air and Water in Europe
DfT Department for Transport
DTI Department of Trade and Industry
E85 Mix of 85% bioethanol and 15% petrol – can be used in FFVs
EEDA East of England Development Agency
EERA East of England Regional Assembly
ERP Environment and Resources Panel
EUCAR European Council for Automotive Research and Development
FFV Flexi-fuel vehicle
HGCA Home Grown Cereals Authority
HGV Heavy goods vehicle
HMRC Her Majesty’s Revenue and Customs
LNG Liquefied Natural Gas
LPG Liquefied Petroleum Gas
NEB Net Energy Balance
NFU National Farmers Union
NNFCC National Non-Food Crops Centre
ppkg pence per kilogram
ppl pence per litre
RES Regional Economic Strategy
RETAG Regional Environmental Technical Advisory Group
RSS Regional Spatial Strategy
RTFO Renewable Transport Fuels Obligation
WTO World Trade Organisation

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1. Introduction
This report focuses on biofuels and the environment; policy, biofuel crops and
production, and biofuel research. The aim of the report is to identify and recommend
ways in which the East of England Regional Assembly (EERA) Environment and
Resources Panel (ERP) can engage in direct lobbying and influencing activity and
where they might endorse the work of other groups. It is also intended to support the
development of a regional consensus on the subject and ERP contribution to future
regional work on the appropriate role of biofuels in the East of England.
The aims of this report are:
 To provide information on the current status of the biofuel industry at an
international, European, national and regional level
 To advise EERA on the scope for the use of biofuels in the East of
England region
 To discuss the benefits and impacts of biofuels on carbon emissions,
natural resources, biodiversity, landscape, and to show how their use can
contribute to the forthcoming review of the Regional Spatial Strategy, and
the emerging regional Climate Change Action Plan
 To support EERA’s contribution to future regional work on the appropriate
role of biofuels in the East of England
 Provide recommendations on what role the Panel and EERA might play
with regards to biofuels and transport
2. Biofuels and the environment
2.1 Biofuels and carbon emissions
There are four principal methods for reducing our dependency on fossil fuels and
reducing CO2 emissions from transport2
:
 Shift towards vehicles that are more efficient;
 Replacement of fossil fuels with alternative fuels e.g. biofuels, hybrid vehicles,
electric vehicles, hydrogen;
 To make the transport system as a whole (buses, trains, cars etc) more
efficient by ensuring that people and goods are transported in a way that
minimises fuel use; and
 Reducing the need to travel.
Biofuels are an alternative to conventional oil-based fuels (petrol, diesel and natural
gas), and will play a major role in replacing fossil fuels with alternative fuels.
Biomass is fuel in which at least 90% of the energy content comes from plant or
animal matter3
. Biomass can be used to generate electricity, heat, gas or to produce
biofuels. Biomass includes energy crops, agricultural, forestry or wood waste,
sewage and organic residues. Some forms of biomass can be used to produce
biofuels for transport.
Any transport strategy should include all four methods. Road transport is responsible
for 28% of UK carbon emissions, and 34% in the East of England4
. In the UK
demand for road transport is growing, although the total consumption of road fuels
2
Greenpeace. Over a Barrel: Reducing the UK and Europe’s Oil Dependency
3
ROC order 2006
4
http://www.defra.gov.uk/environment/statistics/globatmos/galocalghg.htm

5
has remained virtually static since 1997, due to more efficient engines and an
increased proportion of diesel vehicles5
.
There will be a huge expansion in housing in this region as the East of England Plan
proposes the construction of more than half a million new houses by 2021. This will
result in a significant increase in fuel demand in the region, both directly in terms of
domestic fuel requirements and indirectly through an inevitable expansion of vehicle
numbers and movements within the transport network.
Expansion of UK biofuel production will safeguard existing jobs and create new jobs
at each stage of the production process: from growing the crop to processing and
distribution. More details can be found a recent EEDA report6
.
Bioenergy currently supplies 10% of the world primary energy demand7
. In the next
20 years the expected growth of the world economy will increase the demand for oil
for transport from 85 million barrels a day to 330 million barrels a day.
2.2 Environmental benefits of biofuels
Biofuels have significant potential to deliver carbon savings, because the CO2
emitted when they are burned is offset by the amount the crop absorbed as it grew.
The carbon saving from biofuels is offset by the energy that is needed for cultivation,
harvesting, processing and transportation. In general, nitrogen fertiliser
(agrochemical production uses energy) and fuel represent the most significant
energy inputs, so reducing inputs or increasing efficiency of crop nitrogen utilisation
can significantly reduce total energy requirements. Thus, the best biofuels are those
produced using the least energy (e.g. low inputs of fertiliser and processed in an
energy-efficient way); and biogas which does not always require a crop to be grown.
The advantages of biofuels are summarised in Box 1.
Box 1: Potential advantages of biofuels
 Biofuels can cut CO2 emissions by up to 50%, compared to fossil fuels8
. This
takes into account the whole process, from well (or field) to wheels9
.
 Biomethane can improve air quality, especially in congested areas (compared
to conventional fuels).
 Biofuels are renewable and can be sustainable.
There have been some reports of biofuels either offering no carbon saving at all or
being carbon negative (especially soy production in USA), with a net release of CO2.
This occurs where very high agrochemical inputs and large amounts of fuel are used
in production.
Net energy balance (NEB) is used to demonstrate that biofuels have a positive fossil
energy balance, when the whole process (from well (or field) to wheel) is taken into
account. Some examples are shown in Table 1. Friends of the Earth have a web-
based Global Biofuels Database, where more NEBs and other information on
biofuels can be obtained10
.
5
http://www.hie.co.uk/HIE-economic-reports-2005/sac-biodiesel-executive-summary.pdf
6
EEDA. The Impacts of Creating a Domestic UK Bioethanol Industry
7
REN21 2006 – from
http://www.lowcvp.org.uk/uploaded/documents/OEKO%20(2006)%20WWF_Sustainable_Bioenergy_
final_version.pdf
8
http://www.dft.gov.uk/pgr/roads/environment/rtfo/biofuelsbenefits
9
Figures from the UK government's Central Science Laboratories
10
http://www.foe.org/globalbiofuelsdatabase/start1.php

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Biomass can be used as a transport biofuel and to substitute fossil fuels in the
generation of electricity and heat. Some biomass types may be suited to both
applications. There will be differences the carbon and cost saving for each biomass
type and in different uses. More research is needed to understand which uses offer
the greatest reduction in CO2.
Table 1. Net energy balance of biofuels from selected crops
Fuel Net energy balance Reference
Biodiesel from oilseed rape 2.5 11
Biodiesel from cooking oil 5-6 “
Bioethanol from wheat 2 “
Bioethanol from sugar cane in Brazil 8.3 12
Diesel and petrol <1 13
3. Biofuel types
There are three main types of biofuels currently available: biodiesel, bioethanol and
biomethane, which are known as first generation biofuels. A summary of the
production and usage of these fuels are provided in boxes 2, 3 and 4, respectively.
Box 2: Biodiesel
Oilseed Rape to Biodiesel
1 tonne of
Oilseed Rape
Crushing &
solvent extraction
Esterification
470 Litres
Biodiesel
(EN14214)
570 kg Rape meal
(£85/t)
Hexane
Methanol
+ catalyst 40 kg Glycerol
 Produced from soybean oil in the USA and palm oil in tropical countries
 In Europe the main source of biodiesel is rapeseed oil, with recycled
vegetable oils, tallow and fats from the food chain also being used
 Biodiesel can be used in existing diesel engines without modification or it can
be blended with diesel in varying quantities, although the EU Fuel Directive
has set a limit of 5% biodiesel.
 Rape meal can be used for animal feed, and can replace imported soy feed.
 Glycerol is a bi-product, which can be used in the production of soap.
11
http://www.lowcvp.org.uk/uploaded/documents/Biofuels%20global%2006.pdf
12
http://www.bioenergytrade.org/downloads/kruglianskasnovdec05.pdf
13
http://www.lowcvp.org.uk/uploaded/documents/Biofuels%20global%2006.pdf

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Box 3: Bioethanol
In Europe and the UK, well to wheel carbon emissions from bioethanol are 40%
to 60% less than the emissions from petrol. If bioethanol is blended with petrol
the saving will be comparative to the percentage blend. So a 5% blend of
bioethanol in petrol should result in a 2.5% cut in CO2 emissions, and is
equivalent to removing 1 million cars from the roads.
Wheat to Bioethanol
1 tonne of
Wheat Grain
Fermentation
Distillation
380 Litres
Ethanol
300 kg
Brewer’s grains
300 kg CO2
Water
Enzymes
Yeast
 Bioethanol is one of a series of bioalcohols, with others including biomethanol
and biobutanol
 Made from cereals, sugar beet, sugar cane and fodder beet
 Energy content 30% less than petrol
 Tendency to absorb water
 A more costly alternative is biobutanol – which is closer to petrol for fuel
efficiency than bioethanol, and does not absorb water, but is not yet produced
commercially
 Bioethanol can be mixed with petrol at up to 5% by volume without any
engine modification and the manufacturer's warranty still holds

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Box 4: Biogas and biomethane
 Biogas is produced by the process of anaerobic digestion (AD) from
biodegradable organic residues including agricultural slurries, food, vegetable
and garden wastes, sewage and source-segregated municipal waste
 Normally produced as a mix of 60% methane and 40% CO2
 Biogas can be used to generate electricity with some surplus heat,
 Biogas can be upgraded, by removing the CO2, to produce biomethane (at
least 95% methane) and can power gas vehicles14
or could be injected into
the national gas grid
Anaerobic digestion
AD is a process in which biodegradable waste is decomposed in the absence of
oxygen in a sealed environment over a period of 25-30 days (rather than 20+
years if in landfill). This prevents methane (24 times more polluting than CO2)
from escaping into the atmosphere. AD produces:
• Biogas (mainly methane plus CO2);
• A digestate which can be liquid or solid. This can be used as a nutrient-rich
soil conditioner.
Refined to
biomethane
Vehicles
Sewage
Kitchen &
garden waste
Manure & slurry
Food waste
Anaerobic
digestion
Biogas
Gas CHP
Digestate Land
Refined to
biomethane
Vehicles
Sewage
Kitchen &
garden waste
Manure & slurry
Food waste
Anaerobic
digestion
Biogas
Gas CHP
Digestate Land
Sewage
Kitchen &
garden waste
Manure & slurry
Food waste
Anaerobic
digestion
Biogas
Gas CHP
Digestate Land
There are many benefits to biogas and biomethane production including:
• Reduction of organic waste entering landfill
• Reduction in greenhouse gas emissions of 75-200% compared to fossil fuels
• Prevention of methane emissions
• Reduction of waste transportation, when the AD plant is located near the site
of waste production
• Stops effluent (e.g. from intensive rearing units) from entering water courses -
helping to meet the Water Framework Directive.
David Milliband has just requested that the Environment Agency and Defra
develop an AD protocol and digestate standard for the digestate. This will
deregulate the digestate from being classed as a waste, making it easier to apply
to land, provided it conforms to a preset standard. Renewables East have been
lobbying for this digestate protocol.
14
http://www.ngva.co.uk/index/fuseaction/site.home/con_id/5083

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4. Biofuel regulatory policy
The biofuel industry involves many stages and sectors, and is regulated by EU and
UK Government policy. The following sections summarise the current regulatory
policies and looks at each stage of biofuel production in turn, and how they are
contributing to the biofuel industry regionally, nationally, in europe and globally.
4.1 Policy
4.11 EU Policy
European Biofuels Directive
The EU has non-binding legislation in place, the European Biofuels Directive15
, which
sets indicative targets for biofuel use of 5.75% by energy, which is equivalent to 8%
by volume by 2010. Earlier this year the European Commission made proposals for a
new Energy Policy for Europe which includes a binding 10% target for biofuels by
2020 (and a binding 20% target for the overall share in renewable energy by 2020),
to be accompanied by the introduction of a sustainability scheme for biofuels.
Proposals are currently being drafted for incorporation into legislation.
One of the main barriers to achieving the EU 8% by volume target is the limitation of
a maximum of 5% by volume of bioethanol in petrol and biodiesel in diesel in current
vehicles (EU Biofuels Directive). This corresponds to only 3.3% energy content. A
higher energy share could be achieved by increasing the volume limit to 10%. This is
the subject of a current review by the European Commission. If this limit cannot be
increased, the introduction of 8% biofuels into the petrol stream would depend on
new pure biofuel, biomethane and E85 (85% bioethanol, 15% petrol mix) vehicles, in
addition to current vehicles running on 5% biofuel blends (with no vehicle
modifications required)16
.
Fuel emissions
The EU CEN (European Standardisations Committee) Fuel Committee is a forum of
the fuel industry, the automotive sector and others, and is involved in establishing
fuel standards. Ongoing discussions include warranties, proposed new fuel mixes
(e.g. E10, E20, B10) and engine emissions. UK distributors are concerned that more
fuel mixes will mean more pumps.
The European Commission Technical Standards committee has reviewed the
European fuel quality standards, and is proposing an annual 1% cut in fuel emissions
between 2011 and 2020 by improving petrol and diesel fuel quality and introducing
transport fuel with a 10% biofuel content17
.
The European Commission will release draft legislation later in 2007 on the proposal
to cut transport emissions of new cars to less than 130g CO2 per kilometre. The
member states and the European Parliament will then decide whether to accept,
amend or reject the recommended policies.
Biofuel sustainability standard
Ideally, all biofuel used in the UK should be grown and produced in Europe. There
are a range of environmental and sustainability issues surrounding biofuel production
in the tropics, as detailed in box 10. There is currently no sustainability standard for
biofuels. Until then the industry is bound by WTO rules, so it is not possible to
determine where or how biofuels are produced in UK legislation.
15
http://europa.eu/scadplus/leg/en/lvb/l21061.htm
16
http://www.parliament.uk/documents/upload/weeudbioembswe.doc
17
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/120&format=HTML&aged=0&langu
age=EN&guiLanguage=en

10
The RTFO consultation indicates that from 2008, renewable fuel producers can
volunteer to provide a report detailing the sustainability and carbon savings of the
fuel to establish a voluntary benchmarking scheme until an appropriate mandatory
scheme can be implemented. Largely due to the influence of the UK Government, an
EU standard to verify the sustainability of feedstock production for all biofuels, and
also for fuel quality is being developed, but it is unlikely to be implemented until 2009.
The UK Government and organisations including Bioenergy Trade and WWF have
lobbied for World Trade Organisation (WTO) and EU standards to be set as soon as
possible to avoid unsustainable biofuels being diverted to countries with lower or no
sustainability standards. These standards would:
 set clear environmental standards to ensure that bioenergy production really
does bring a significant decrease in greenhouse gas emissions while
preventing harmful impacts on biodiversity
 create a standardised tool to assess the climate benefits and environmental
sustainability of a given biofuel
 make sure that we don’t address one problem while creating another
 provide incentives and reward improved production practices
 drive the research and development of efficient technologies for second
generation biofuels, such as lignocellulosic for ethanol or Fisher-Tropsch for
biodiesel
It is important that all standards include the full life cycle analysis in order to calculate
the carbon saving of the biofuel. This must include all aspects of production and
processing – from seed to wheel.
EU Reports
The Biofuels Research Advisory Council (BIOFRAC) was established as the first step
to create a European Biofuels Technology Platform. They have produced a report on
EU biofuel production by 2030, highlighting potential opportunities in the EU for the
biofuel industry18
.
The European Environment Agency (EEA) report: “How much bioenergy can Europe
produce without harming the environment?”19
reports on European land available for
energy crop production, including biofuels for transport.
4.12 UK Policy
The UK biofuels industry is entering an important phase and needs clear policy
signals that will provide long term confidence in the market and encourage sufficient
investment in biofuel plants and infrastructure to develop the domestic market.
Four Government departments are responsible for developing UK biofuels policy:
 Treasury and HM Customs and Excise – Taxation and fiscal issues;
 Defra – Sustainable development, climate change, air quality, rural issues,
promotion of agricultural feedstocks to biofuel products;
 DfT – Use of low carbon fuels for transport; and
 DTI – Renewable energy policy and overall application.
Fuel duty
Since 26th
July 2002 the fuel duty rate has been 20p per litre (ppl) lower for biodiesel
than for ultra-low sulphur diesel (announced in 2002 Budget). The same reduction for
bioethanol, compared to ultra-low sulphur petrol came into effect on 1st
January
18
http://www.biomatnet.org/publications/1919rep.pdf
19
http://reports.eea.europa.eu/eea_report_2006_7/en

11
2005. The arguments for and against increasing the fuel duty rebate are discussed in
Box 5. In Budget 2004 there was a commitment to consider the potential of fuel duty
incentives to support refining vegetable oils at oil refineries and to consider the
application of enhanced capital allowances20
to biofuel processing plants.
Box 5: Fuel duty incentives – biofuel rebate debate
For a rebate:
It costs more to produce biofuels than fossil fuels. In a ‘voluntary’ market, biofuels
need a fuel rebate to stimulate their growth. The EU Biofuels Directive is not yet
mandatory and hence the UK initially went down the fuel rebate route, but precise
support is difficult to judge given fluctuations in oil, crop and biofuel production costs.
Many believe the UK rebate is not sufficient for biofuels to compete with conventional
fuels; compared to many other EU countries, such as Germany, where there has
been full fuel tax rebate to encourage the establishment of a sustainable biofuel
industry21
. In addition, industry has consistently called for higher duty incentives than
the current, typically of the order of 25ppl to 30ppl. Depending on other market
factors at a given point in time, duty incentives at these levels could substantially
increase the penetration of renewable fuels in the UK, and consequently increase
carbon savings in the transport sector, albeit at a cost to the general taxpayer.
Against a rebate:
The treasury claims that the 20ppl rebate currently costs the Exchequer £59 million
per year. Increasing this further would create additional, ongoing costs to the
Exchequer. At 5% biofuel sales, a 25ppl duty incentive would cost £600 million. A
30ppl incentive would cost £720 million. Is this politically acceptable? No rebate
would inevitably mean an increase in price at the pumps to the public. However it is
arguable that this may be the correct approach following the idea that ‘the polluter
(the car driver) pays’.
A number of measures relating to biofuels were also announced in the 2007 Budget
Report22
:
 The extension of the 20ppl biofuels duty incentive until 2009-10. In addition,
the RTFO buy-out price (the price paid by fuel suppliers who fail to meet their
obligation for the first year of the RTFO) will be set at 15ppl in 2009-10.
 Following consultation, HMRC (HM Revenues and Customs) will relax
requirements for small biofuels producers to register and submit returns and
reduce the requirement for all but the largest producers from monthly to
quarterly returns.
 The Government will extend the duty incentive for biogas at least at its current
level until 2011-12, providing certainty to the industry.
 A 2% company car tax discount for company vehicles capable of using high-
blend bioethanol E85 will start in April 2008.
 The Government intends to permanently reduce the current duty rate for
biofuel/rebated gas oil mixtures.
 Subject to obtaining State aid clearance, the Government will introduce a
100% first-year allowance for biofuel plants that meet certain qualifying
criteria, and which make good carbon balance inherent.
20
Enhanced Capital Allowances (ECAs) enable a business to claim 100% first-year capital allowances
on their spending on qualifying plant and machinery. This can deliver a helpful cash flow boost and a
shortened payback period.
21
http://www.hie.co.uk/HIE-economic-reports-2005/sac-biodiesel-executive-summary.pdf
22
Budget 2007 report Chapter 7: Protecting the Environment, paragraphs 7.44 - 7.56: http://www.hm-
treasury.gov.uk/media/73B/74/bud07_chapter7_273.pdf

12
 The Government will introduce a payable enhanced capital allowance for
companies not in taxable profit to ensure both profit and loss making firms
have an incentive to invest in the cleanest biofuel plants.
 The Government will propose the establishment of an EU-US taskforce to
facilitate the exchange of skills, knowledge and research and development on
biofuels, including the development of ‘second generation’ biofuels.
 The Government will maintain the CNG differential with main road fuels in
2009-10, and will decrease the LPG differential by a further 1ppl.
Renewable Transport Fuel Obligation
The Renewable Transport Fuels Obligation (RTFO) was announced in November
2005 as the UK mechanism for introducing the Biofuel Directive, and will be
introduced in April 2008. This will force oil companies to ensure that a certain
percentage (2.5% by 2008, 3.75% by 2009 and 5% by 2010) of their fuel sales is
from a renewable source i.e. biofuels. These targets are on total sales in the UK.
Initially the targets will be achieved predominantly from biodiesel, with bioethanol
coming into play by the end of 2009. Companies will be required to report on the
level of carbon savings achieved and the sustainability of their supplies.
Biofuel targets are generally quoted in terms of energy in EU legislation but volume in
the UK. For clarity, the main targets are summarised in the table 2. This difference
could lead to confusion on whether EU targets are being reached in the UK.
Table 2. Comparison of biofuel content by volume and by energy content
Target By Volume % By Energy %
RTFO 2008 2.5 1.7
RTFO 2009 3.75 2.5
RTFO 2010 5 3.3
EU target 2010 8 5.75
By the end of 2005 UK use of biofuels had reached only 0.3%23
. The Government
has estimated that once the level of the RTFO reaches 5% in 2010/11, it will save
around a million tonnes of carbon per annum, which is roughly equivalent to taking a
million cars off the road. Not all biofuel in the UK will be produced here, but Eastern
European countries will have a large part to play in biofuel crop production.
The Government has recently consulted on the implementation of the RTFO, and
looks beyond 2010 by proposing various criteria for whether the RTFO will be
increased towards 2020, including setting sustainability standards for biofuels. It is
intended that the RTFO will eventually replace the fuel duty incentive.
Government publications and reports
The Government intends to publish a Biomass Strategy in June 2007, which will
include the implementation of the action plan set out in the Government’s response
to the Biomass Task Force Report (published April 2006)24
. The response focussed
mainly on biomass for heat and electricity, however there are a number of actions
including a promise to review the Government’s approach to anaerobic digestion
(AD) and produce a quality protocol for AD digestate, similar to that already produced
in Scotland, which will be published in the Waste and Resources Action Plan.
4.13 Regional Policy
23
http://www.nfuonline.com/documents/Bioenergy/Biofuels%20Policy%20Statement%20new%20redr
aft%20November%2010th%202006.pdf
24
http://www.dti.gov.uk/energy/sources/renewables/renewables-explained/biomass/government-
response/page28196.html

13
East of England Regional Spatial Strategy
Biofuels are not specifically addressed in the current draft RSS. The Secretary of
State's Proposed Modifications contains two relevant Chapters: Chapter 9 “CO2
Emissions and Renewable Energy” and Chapter 7 “Regional Transport Strategy”.
Chapter 9 contains a clear statement that 'carbon reduction is particularly urgent and
challenging' in this region due to the combination of the vulnerability of the region to
the effects of climate change and the level of development proposed. Chapter 9
contains two draft policies, ENG1 (CO2 Emissions and Energy Performance) and
ENG2 Renewable Energy Targets. ENG1 is essentially concerned with the energy
efficiency of new residential and commercial development and ENG2, contains
renewable energy targets. Both policies reflect the recommendations of the Inspector
following the Examination in Public, in referring to the need for revision and
development through the review of the RSS.
Chapter 7 contains 15 policies; Policy T1 describes objectives including 'ensuring
{that} the transport sector makes an appropriate contribution to the required reduction
in greenhouse gas emissions' and defines outcomes including "reduced greenhouse
gas emissions". The current strategy however, does not explain how this will be
achieved.
The RSS is due to be published later in 2007 with its first review commencing at
about the same time. There is a clear requirement for the review to address CO2
emissions and renewable energy in a much more comprehensive manner than at
present and for the role of the transport sector to be fully incorporated. EERA have
recently commissioned consultants to undertake research to inform the review
("Placing Renewables in the East of England"). This work focuses on electricity
generation from RE technologies. It is recommended that further research be
undertaken by EERA focussing on 'biofuels, CO2 reduction and the transport sector',
for the RSS review.
East of England Regional Economic Strategy
Biofuels were recognised as an important growth area for the region's rural areas
supported in the current RES under Goal 8: An exemplar for the efficient use of
resources, with actions to “influence the fiscal and delivery landscape by promoting
policies such as biofuels taxation, grants and CAP reform for the benefits of the
renewable energy sector”; and to “assist in the development of sites and markets for
economically viable biofuel production and associated technologies”. These actions
have been delivered through Renewables East, initially solely funded by EEDA, who
were praised in a recent review of Goal 8 by EERA for their role in developing the
biofuels market in the region. The RES is currently being reviewed and will undergo a
formal consultation period from Sept-Nov 2007, which is an opportunity to ensure
biofuels remain a priority work area for EEDA to support.
5 Biofuel crops
5.1 Agriculture
The agricultural sector contributes 7% of the UK’s total greenhouse gas emissions
(47% of the UK’s methane emissions and 67% of nitrous oxide) and farmers are on
the frontline both in terms of adapting to climate change and in mitigating its effects25
.
25
Sustainable Farming & Food Strategy Forward Look 2006:
http://www.defra.gov.uk/farm/policy/sustain/pdf/sffs-fwd-060718.pdf

14
The National Farmers' Union (NFU) wishes to see a thriving domestic UK biofuel
industry develop, comprising biodiesel from oil seed rape and bioethanol from sugar
beet and wheat26
. Some UK growers are already producing crops for biofuels,
including wheat for bioethanol production in Spain and oilseed rape for German
biodiesel production. A current issue is that the purchasers of biofuel crops require
long-term contracts with farmers, whereas historically farmers prefer short-term
contracts of 1-2 years.
Biofuel crops can be grown on existing arable land or on set-aside land, as non food
crops can be grown on set-aside. There are concerns that an increased use of set
aside land for non food crops may affect biodiversity. However, set-aside was
introduced as a production control mechanism not specifically to benefit biodiversity
or threatened species. There is currently an overproduction of food cereals in Europe
and 559,000 hectares of land set aside in the UK (7% of agricultural land) avoids
further overproduction27
. Thus the UK has significant capacity to produce energy
from biofuel crops without compromising food production.
The NFU believe that the most effective support for farmland wildlife is through viable
farm business and targeted habitat management via agri-environment schemes,
including Environmental Stewardship and Environmentally Sensitive Areas. In the
East of England, over 810,000ha of land is in Entry Level Stewardship (approx 51%
of agricultural land; over 4,100 farmers).
There are concerns that using set-aside land for non food crops may increase
agrochemical and water use, and increase CO2 emissions (especially due to fertiliser
use). If set-aside is reduced, farmers will use the land for crop production, with
energy crops being one of their options. It is important to consider how to reduce
inputs of biofuel crops to minimise possible impacts.
In the East of England in early 2007, four farmer training events, run by Natural
England’s Farm Advice Unit, raised awareness of green energy, including biofuel
production. A number of farmers expressed an interest in growing crops for biofuels,
provided there was a financial incentive for doing so. The NFU have worked with
Renewables East to raise awareness of how farmers can convert their waste to
energy. EERA should continue to support events which raise awareness of biofuels
to all business and public sectors.
5.2 Environmental impacts of UK biofuel crops
In the UK the crops most suitable to produce biofuels are oilseed rape (for biodiesel),
wheat and sugar beet (for bioethanol). In the East of England these are already
grown, in amongst a range of other crops. An increase in the production of these
crops may add to any existing environmental impacts; existing research in this area
needs to be understood in a regional context.
The rural mosaic of arable land in the region, plus the surrounding hedges, ditches,
grassland and pockets of woodland ensure that there are many diverse habitats. A
number of rare farmland birds use arable crops and the adjacent grass buffer strips
and hedges for nesting and finding food. Details about the environmental, landscape
and biodiversity issues of oilseed rape, sugar beet and wheat can be found in Boxes
6, 7 and 8, respectively. The environmental impacts of cereal and rape crops in the
26
http://www.nfuonline.com/documents/Bioenergy/Biofuels%20Policy%20Statement%20new%20redr
aft%20November%2010th%202006.pdf
27
http://www.nfuonline.com/x10124.xml

15
UK are covered in greater detail in a Home Grown Cereals Authority (HGCA)
report28
.
Box 6: Oilseed rape
Oilseed rape is the most productive oil bearing crop in the UK. Inputs are similar to
most other combinable crops. Herbicides tend to be mainly used in the autumn and
fungicides from late winter onwards with some applications at or before flowering,
depending on the season. Insecticides are frequently used at early crop emergence
in the autumn. An additional treatment is sometimes applied during flowering for
weevil control. Farmers are advised to spray in the morning or evening to reduce
impacts on other invertebrates.
Environmental benefits:
 In crop rotations rape enhances the yield of following wheat crops.
 Reduces nitrogen requirements of the following crop (so less fertiliser needed).
 Root structure is beneficial to soil structure.
Negative environmental impacts:
 Slug pellets (coloured blue so birds do not eat them) are often used during
establishment, and in the following crop.
 High levels of nitrogen are applied to oilseed rape.
Biodiversity benefits:
 Flowers are a good pollen and nectar source for many insects including bees.
 Insects in the crop and broad leaved weed seeds provide food for young birds.
 Many birds including linnet, reed buntings and corn buntings (rare farmland birds)
use the crop to nest and feed.
 Spilt seed and stubble are very beneficial after harvest for bird food.
Other issues that must be considered are the impacts that biofuel crops may have on
the landscape, historic environment and the need for irrigation. The landscape issues
for growing these biofuel crops are minimal, as they are already grown in this region.
This is in contrast with the biomass crops such as miscanthus and willow, which are
being introduced in this region for heat and energy production.
English Heritage has published a report looking at biomass energy and the historic
environment. They highlight that the Planning Policy Statement 22 (PPS22) must be
adhered to for land-based renewable energy developments29
. The effects of any
proposed bioenergy project on the historic environment must always be considered
at the planning stage.
Sugar beet is rarely irrigated, even when grown on sandy soil. Between 4500-14000
m3
/ha of water can be use per growing season30
.
Oilseed rape and wheat are not irrigated, so there will be no increase in water
demand if there is an increase in production of these crops.
Although all three crops require agrochemical input to obtain good yields, the UK
agrochemical guidelines are stringent and include nitrate vulnerable zones which
restrict nitrogen inputs, and thus minimise environmental impacts.
28
www.hgca.com/publink.aspx?id=2177
29
English Heritage. 2006. Biomass Energy and the Historic Environment.
30
John Nix. 2005. Farm Management Pocket Book. Amdersons Centre.

16
Box 7. Wheat
Input types are similar to most other combinable crops, although quantities will vary.
Wheat utilises the majority of nitrogen applied, so there is minimal nitrogen leaching.
Aphids are the main pest problem, and are controlled with an insecticide spray in the
autumn when few non-target species are around.
Environmental benefits:
 Good for preventing soil erosion, as long as not drilled late
 Rough seedbed reduces erosion
 Wheat utilises nitrogen so minimal nutrient leaching
 High levels of nitrogen are applied
Biodiversity benefits:
 Skylarks nest in wheat, although winter cereals can be difficult for birds to use,
hence skylark plots (in the Environmental Stewardship Scheme) can enhance
nesting opportunities.
 Wheat stubbles provide feeding opportunities for a range of birds
Box 8. Sugar beet
Environmental and biodiversity benefits:
 Inputs – low nitrogen
 The stubble from the previous crop is left in the field before sowing, which can
reduce run-off and erosion, and provides good winter foraging for seed-eating
birds (grey partridge, skylark, sparrows, finches and buntings).
 Birds including lapwing, stone-curlew and skylarks (rare farmland birds) use the
crop to nest and feed.
 In this region sugar beet tops are eaten by wintering geese (including pink footed
geese) and wildfowl.
 Sugar beet is vulnerable to weed competition, so a clean crop is important. This
is achieved with herbicides and some mechanical weed control between rows.
 Heavy rain following seed bed preparation (before sowing), when on light to
medium soils on sloping land may cause run-off. During/after harvest there may
be some soil erosion and compaction with late lifted crops.
Second generation biofuels
Bioethanol and biodiesel are classed as “first generation biofuels”. Over the coming
decades these may be succeeded by “second generation biofuels”, from more
advanced processes. Second generation transport biofuels offer a number of key
benefits over both conventional fossil transport fuels and the current generation of
biofuels. These benefits include the ability to achieve significant ‘well-to-wheel’
reductions in greenhouse gas emissions, combined with dramatically reduced land
requirements compared with first generation biofuels since most biomass, including
many organic wastes, can be used as feedstock31
.
A wide range of crops and trees are also being considered for second generation
biofuels, with the whole plant being used, rather than currently e.g. just the seed of
31
DTI 2006 Global Watch Mission Report: Second Generation Transport

17
oilseed rape, or the tap root of sugar beet. These technologies are still in the
development stage. More on second generation biofuel research is in section 4.7.
The positive and negative environmental impacts of these existing and new crops will
need to be considered.
Market price of biofuel crops
The market price of crops is currently a major issue for farmers, especially for sugar
beet, due to the recent EU reform on sugar beet as the amount of sugar beet grown
in England is set to reduce dramatically as sugar prices go down. This is discussed
further in Box 9.
Defra offers funding for growing biofuel crops, including wheat and oilseed rape.
Farmers can receive the single farm payment for biofuel crops grown on set-aside,
and energy aid (€45/ha)32
is available for crops grown on non-set-aside land. The
latter is funded by the EU Energy Crop Premium, and is subjected to a maximum
guaranteed area of 2 million ha throughout the EU. If the area claimed exceeds this,
payment per ha will be reduced accordingly. This funding is not a major driving factor
in farmers’ decisions to grow energy crops in the UK.
Box 9. EU Sugar reforms
The recent EU reform on sugar beet means that the amount of sugar beet grown in
England will reduce as sugar prices go down. For nearly 40 years the EU has
guaranteed minimum prices for sugar as part of the Common Agricultural Policy, with
EU sugar prices over four times higher than the global market rate. Brussels also
pays out export subsidies to get millions of tons of sugar a year off its market, helping
to keep EU prices high and support European farmers.
The EU sugar reform began in July 2006, cutting the prices offered to European
sugar farmers by 36%, bringing the EU's sugar rules in line with global frameworks.
The changes were demanded by the WTO, but EU farmers and sugar firms will suffer
job losses. British Sugar has announced the closure of two of its six factories, one in
York and the other at Allscott in Shropshire.
Sugar beet has been one of few genuinely profitable crops, and this new reform will
mean that for some UK farmers, growing sugar beet will no longer be profitable,
especially by 2009, when the minimum price will be £29/tonne. Increasing yield and
reducing production costs are the main mechanisms for increasing profits. If the
sugar beet crop is reduced or disappears as a result of the economics of growing the
crop, the ground nesting birds that depend on it will also decline. For example,
lapwing (rare farmland bird) use sugar beet for nesting and foraging in the spring and
summer, and they feed on the winter stubble.
Other biofuel crops
In addition to wheat, oilseed rape and sugar beet, biofuels can also be made from
other crops in the UK, e.g. grasses that can be harvested 2-3 times per year. In
Africa, the Americas and Asia, palm, sugar cane and soy are grown for biodiesel
production, but there is concern over the negative environmental impacts caused due
to the change in land use, such as deforestation for palm production. Box 10
discusses the environmental impacts of biofuel production from soy and palm oil.
This emphasises the importance that the EU standards being developed are clear
32
The Energy Aid Payments Scheme enables aid to be claimed in respect of crops which are grown to
be used for the production of energy (for heat, electricity or transport fuels) on land which has not been
set-aside.

18
that biofuels must only be produced from sustainable crops and contribute to
reducing global CO2 emissions, rather than crops grown on recently cleared land.
Box 10: Environmental impacts of biofuel production from soy and palm oil
One of the main threats to the sustainability of biofuel production is the clearance of
land in the tropics to increase the area of biofuel crop production. In S. America
areas of bush savannah are cleared to grow soy for animal feed (currently exported
to Europe and other industrialised countries), and potentially also for biodiesel. Oil
palm plantations are responsible for deforestation in Indonesia, Malaysia, Columbia
and Cameroon.
In 2006, the Indonesian Government announced plans to clear three million hectares
of forest to create oil palm plantations dedicated to biodiesel production. Losing such
large areas of precious habitat will cause a decline of threatened bird species like the
Sumatran Ground-cuckoo and also threatened mammal species such as the Orang-
utan33
. Land conversion is spurred by fast rising palm oil prices driven by the growing
global demand for biodiesel34
. For example, it is estimated that Malaysia will need to
open up another ten million hectares for oil palm plantations in order to meet global
demand for palm oil biodiesel35
.
As well as threatening biodiversity, the clearance of natural and semi-natural habitats
such as forests, savannah and grasslands causes huge quantities of greenhouse
gases to be emitted. This release in soil carbon may be less than what will
subsequently be fixed by the cultivation of energy crops. Calculations suggest that
the greenhouse gas payback time for ploughing grassland for biofuels will be 17 to
100+ years; much more for rainforests. Land-use change, particularly in the tropics,
is already responsible for approximately 20% of global emissions. In addition to
environmental and biodiversity impacts, changes in land use also have implications
for vulnerable indigenous communities.
The import of biofuels produced from sugar cane, palm oil and soy is not inherently
negative, though the costs of transport to the environment must be accounted for.
Imported biofuels can make a valuable contribution to sustainable development, but
only if they are produced without unacceptable environmental or social costs36
.
6 Biofuel production
6.1 Biodiesel Production in the EU
The European Union is so far the world’s largest biodiesel producer, and uses
considerably more biodiesel than bioethanol37
. Biodiesel has been produced on an
industrial scale in the European Union since 1992, largely in response to positive
signals from the EU institutions. There are approximately 120 plants in the EU
producing up to 6,100,000 tonnes of biodiesel annually. Germany, France and Italy
are the highest producers in the EU38
.
33
http://www.birdlife.org/news/features/2006/06/biofuels.html
34
http://www.planetark.com/dailynewsstory.cfm/newsid/39159/story.htm
35
Stephenson, T. The Roundtable on Sustainable Palm Oil – Purpose and Progress. Symposium on
Sustainable Resource Development. Institute of Directors, London May 18, 2006
36
http://www.rspb.org.uk/policy/bioenergy/tropics.asp
37
http://www.biofuelwatch.org.uk/biofuel_paper.pdf
38
http://www.ebb-eu.org/biodiesel.php#eupro

19
A 2006 study by CONCAWE, EUCAR and the European Commission’s Joint
Research Council found that the EU could supply a maximum of 5% of road transport
fuels from domestic production of sugar beet and oilseed rape, but that this would
require some intensification of agriculture, using all set-aside land for production and
increased rotation of oilseed crops39
. There is some concern that this could reduce
biodiversity and affect the habitat of some rare farmland birds.
Experience in Germany has shown that a very significant duty incentive can deliver
increased sales. Since the beginning of the 1990s, oilseed rape has been cultivated
in Germany for biodiesel production. Some UK farmers have exported rape to
Germany for this market. The biodiesel market developed slowly at first, producing
100,000 tonnes by 199940
. A 100% duty incentive on biodiesel, introduced in 2004,
enabled sales to exceed 2 billion litres in 2005. This means biodiesel is exempt from
mineral oil tax and therefore has a price advantage over conventional diesel fuel (up
to 10 cents cheaper than conventional diesel). As a result biodiesel is more desirable
for the user both environmentally and economically41
. However, the duty incentive is
being phased out by December 2009, and replaced by an obligation, because of the
cost to the Government. This domestic production in Germany created 19,000 jobs,
mainly in agriculture.
6.2 Biodiesel production in the UK
Biodiesel ingredients, including palm and soy oil are currently imported to the UK to
produce biodiesel, hence the majority of UK production plants are on the coast.
Oilseed rape and used oil are also used to produce biodiesel. Details of how
biodiesel is made are in box 2.
In 2005 the first large scale UK biodiesel plant, Argent Energy, Motherwell started
production of up to 25,000 tonnes of biodiesel a year42
. This produces biodiesel by
recycling by-products (tallow and used cooking oil), meeting the European Standard
for biodiesel, EN 14214.
The new Greenergy biodiesel plant at Immingham on the east coast of North
England processes 100,000 tonnes of biodiesel per year and their second
100,000t/year facility is due for completion at the end of 200743
. Through the
Greenergy Field to Forecourt® contract Greenergy buys oilseed rape from UK
farmers to use for biodiesel production. In 2006, 10% of the UK oilseed rape crop
(which equates to 160,000 tonnes rapeseed) was acquired through this contract for
use at the Greenergy plants. The rapeseed is contracted from 1,500 farmers through
the agricultural cooperative, Grainfarmers.
Biofuels Corporation has recently opened a biodiesel plant in Teesside. Another
large scale biodiesel plant is being constructed in Grangemouth, Scotland44
.
A number of small enterprises recycle used cooking oil into biodiesel45
, but profit
margins are very small, if at all. There are serious issues with cost of production,
what to do with the glycerine which is also produced, and varying fuel quality. Where
the biodiesel quality is bad, the oil and fat may separate out, with solid fat blocking oil
filters, and preventing the engine from starting in cold weather. Locally produced
biodiesel from used oil is an idea that gets a lot of PR (local fuel etc) but in reality
39
http://ies.jrc.cec.eu.int/wtw.html
40
http://www.biokraftstoffverband.de/vdbi/allabout/market.html
41
http://www.biokraftstoffverband.de/vdbi/allabout/market.html
42
http://www.argentenergy.com/
43
http://www.greenergy.com/company/biodiesel_production/index.html
44
http://www.scotland.gov.uk/News/Releases/2006/10/17154211
45
http://www.biodieselfillingstations.co.uk/region06.htm

20
rarely leads to a huge business success. Selling the fuel to the public involves
standards and expensive testing for quality assurance. Moreover, the RTFO may
affect the continuity of such SME operations, and is an issue considered in the recent
DfT consultation. The regulations for cooking oil recycling into biodiesel are listed in
Box 11.
Recycling cooking oil is unlikely to make a commercially viable contribution to
forecourt fuel supplies, but could provide an economically priced fuel for
communities, agricultural vehicles or vehicle fleets.
Box 11. Cooking oil recycling regulations
 For production of over 5,000 litres of biodiesel per year an Environment Agency
operating licence is required.
 Used cooking oil is classed as a hazardous substance, so a waste management
licence is required to collect the oil.
 Used cooking oil use is regulated by the Pollution Prevention and Control
Regulations 2000.
 Storage of waste oil for all scales of production is covered by Waste Management
Licensing regulations .
 To obtain the 20ppl rebate the biofuel must be produced to criteria set by
Customs & Excise (different to the EU Fuel Standard), based on a chemical
target of > 96.5% esters.
 To sell biodiesel the EU Fuel Standard must be complied with.
6.3 Biodiesel consumption in the UK
In 2006, 169 million litres of biodiesel were sold in the UK, with total diesel sales of
around 24,286 million litres. Thus biodiesel made up less than 0.7% of total diesel
sales, due to cost, lack of production and availability. An increase in biodiesel
production in the UK and the EU is necessary to raise this to the 5% RTFO target by
2010.
In summary, the main reasons why biodiesel is not used more widely are:
 No incentive for use
 Very limited infrastructure for high blends
 Very limited availability of vehicles able to use blends of more than 5%
biodiesel
 No fiscal or monetary advantage
 Lack of awareness / knowledge of biodiesel
6.4 Bioethanol production
There is currently no commercial production of bioethanol in the UK – it is all
imported. Details of how bioethanol is made are in box 3.
EEDA commissioned a major study on the impacts of creating a domestic UK
bioethanol industry46
. They calculated that a 100kt bioethanol/year facility processing
wheat (from 22,718ha) and sugar beet (from 15,578 ha) would create 970 jobs. They
estimated that 12 plants would be required to achieve a 5% blend in all UK petrol.
In 2006, work commenced on the UK’s first bioethanol plant at Wissington near
Downham Market, Norfolk. Planned to come on stream in July 2007, the plant will
produce 55,000 tonnes (70 million litres) of bioethanol from locally grown sugar
46
http://www.eastofenglandobservatory.org.uk/observatory/reports/environment/BioethanolFinalReport
June2003.pdf

21
beet47
, and has a forward contract to supply Greenenergy. British Sugar have said
they are collaborating with BP and DuPont to convert production to biobutanol, which
is easier to blend with petrol at higher concentrations than bioethanol and has a
higher energy content, closer to that of conventional petrol.
Green Spirit Fuels Ltd is constructing a plant at Henstridge, Somerset which is
expected to produce 130 million litres of bioethanol per year from 340,000 tonnes of
wheat by 2008, enough for one billion miles of motoring48
. Ensus is constructing a
bioethanol plant in Teesside49
.
6.5 Bioethanol consumption in the UK
In 2006, 95 million litres of bioethanol were sold in the UK, with total petrol sales of
around 24,629 million litres. Thus bioethanol made up less than 0.4% of total petrol
sales. At a 5% inclusion level about 3 million tonnes of CO2 per year could be saved
in the UK, being 20%-40% of the Government's total CO2 emissions targets for the
transport sector by 2020.
In summary, the main reasons why bioethanol is not used more widely are:
 Not produced in the UK
 Very limited availability of vehicles able to use blends of more than 5%
bioethanol
 Lack of awareness / knowledge of bioethanol
In addition, the main reasons why bioethanol E85 is not used more widely are:
 Very limited infrastructure
 Very limited availability of FFVs
 Lack of awareness / knowledge of E85
6.6 Biomethane production
Details of how biomethane is made via AD are in box 4. There are less than 20 AD
plants in the UK but over 3000 in Germany. AD is a proven technology on the
continent, where biomethane is used to run cars, buses and even trains (e.g. Svensk
Biogas in Sweden). Vehicles using liquid and compressed natural gas can also use
biomethane, for more information see box 12.
The beauty of biomethane is that no crop necessarily needs to be grown, instead
organic residues can be used; either from agricultural or commercial mixed waste,
source-segregated municipal waste, or sewage. Thus AD reduces waste to landfill
without the need for incineration.
Biogas can be used for heat and electricity by nearby housing or local businesses, or
refined to biomethane to power vehicles. The digestate (biofertiliser) will save
farmers money by reducing the need for mineral fertiliser (produced by a carbon
intensive process) and acting as a soil conditioner. Moreover, if a farmer or group of
farmers set up an AD plant for animal effluent, and also take in municipal green and
food waste, they can charge a gate fee, which makes AD a more economic business
47
http://www.renewableseast.org.uk/ProjectSummary.aspx?q=a0L1ukLlORcHrUej+aIXJQ==
48
http://www.greenspiritfuels.com/index.htm
49
http://www.ensusgroup.com

22
proposition. Farm AD plants on slurry alone are not economic given the low energy
content of slurries.
Box 12. Gas fuels for vehicles
There are three main gas fossil fuels for vehicles:
 Liquefied Natural Gas (LNG)
 Compressed Natural Gas (CNG).
 Liquefied Petroleum Gas (LPG)50
LPG is best suited to light vehicles such as cars and small vans which normally run
on petrol. LNG and CNG are more suitable for HGV vehicles and are widely used on
the continent. Diesel engines can be modified to substitute up to 70% of the diesel by
LNG or CNG which are 50% of the cost of diesel. Biomethane can replace LNG and
CNG. Engine conversion kits have a payback of <2 years.
In Denmark, glycerine (a by-product from biofuel production) is added to AD plants
as it has a good energy profile. In Germany crops such as maize are grown as a
feedstock for AD plants to produce power and heat. Methane from sewage plants is
currently used to generate electricity but could be upgraded to vehicle quality,
although more research is needed.
Biogen UK (previously called Bedfordia) is the most recent and modern commercial
AD plant in the East of England, located on a farm in Bedfordshire. Slurry from the
pig unit (10,000 tonnes) is mixed with local food waste (30,000 tonnes). The
company is paid a gate fee for receiving the latter making the project economically
viable. Biogas is used to generate 1Megawatt of electricity and the digestate is
applied as a biofertiliser to 800ha of adjacent land owned by Bedfordia Farms.
Other UK AD plants include Holsworthy in Devon and Greenfinch in Ludlow and
several smaller plants in Scotland.
Biomethane may be best suited to captive fleets e.g. buses, waste and recycling
carts, taxis, farm vehicles. This would reduce the required distribution infrastructure.
If a council waste management site includes an AD plant for the organic waste
fraction, this gas could be stored on site and used for council vehicles.
Sheffield are considering building a biogas plant using garden and kitchen waste to
produce biomethane to power its fleet of 300 council vans.
6.7 Biomethane consumption in the UK
Cars that run on CNG or LNG could also run on biomethane. However, less than
0.4% of the nearly 33 million vehicles licensed in the UK run on LPG or bi-fuel (LPG
in combination with petrol or diesel), with only 500 running on CNG51
. The UK is
alone in having a reducing number of vehicles operating on CNG and LNG.
In summary, the main reasons why gaseous fuels are not used more widely are:
 Little inclination to use in spite of fuel costs being 50% that of diesel
 Very limited distribution infrastructure
50
LPG is propane and butane, with a 20% saving on CO2 over petrol and a 1.8% saving compared with
diesel. It costs £1,500-£2,000 to convert a car or a light van for LPG use. There are more than 1,200
LPG refuelling stations in the UK, with around 140 in the East of England.
http://www.boostlpg.co.uk/driver_industry/why_LPG.htm has a list of LPG refuelling stations.
51
http://www.dft.gov.uk/pgr/roads/environment/rtfo/notesbiodiesel

23
 Very limited availability of gas-fuelled vehicles in the UK with support facilities
 Lack of awareness and experience of gaseous fuels – a culture amongst fleet
operators that liquid fuels are the only option
 No fiscal or monetary advantage**
** The BSOG (Bus Service Operators Grant) reduces the fuel duty payable by
operators by 80% and hence there is little financial advantage to adopt alternative
fuels.
The main incentives for using biomethane are:
 Greatly reduced carbon footprint compared to all other fuels
 HGVs that run on gas are quieter, which could present logistical advantages
 Reduced emissions of diesel particulates which can affect health
 Many environmental benefits - see box 4
7 Biofuel use
7.1 Blending with petrochemicals
Biodiesel has to be mixed at the refinery whilst bioethanol can be mixed at
distribution depots e.g. the Essex terminal. Greenenergy, who supply Tesco filling
stations, blend imported bioethanol from Brazil with petrol at their Thames Estuary
Plant before distribution.
UK refiners supply most of the fossil fuel sold in the UK. The implementation of the
RTFO will force refiners to source biofuels from the global market, and they will
favour long-term contracts with large biofuel suppliers.
7.2 Filling stations
There are a number of implications for filling stations in supplying biofuel blends of
transport fuels, including:
 Sufficient demand for higher blend fuels (such as E85).
 Additional pumps as more blends come onto the market.
 Specialist distribution areas for biomethane
 Cleaning of storage tanks - required before bioethanol blends can be stored.
As all cars can run on a mix of up to 5% biofuel + 95% fossil fuel, no extra pumps will
be required for 5% biofuel blends (pumps currently used for diesel and petrol can be
used). However, an extra pump is needed for E85.
5% biodiesel blends are already available in some UK petrol stations. Morrison’s and
Tesco have taken the lead in providing biofuels to the public. In the East of England
biodiesel can be purchased in at least 33 fuelling stations (in some cases this is 5%
biodiesel + 95% diesel), but no biomethane is available.
Renewables East worked with the Energy Saving Trust, Saab, Morrisons and
Harvest Energy Petroleum to introduce the first Harvest Bioethanol E85 pump in
Norwich in March 2006. E85 (85% bioethanol, 15% petrol) is currently only available
at Morrisons petrol stations, with five in the East region: Norwich, East Dereham,
Lowestoft, Diss and Ipswich. Morrisons intend to expand E85 availability as they
modernise forecourts, provided there is a government investment in supporting E85.
Lobbying is required for biofuel blends (e.g. E85).

24
Tesco, who have a 25% stake in Greenenergy, sells 5% bioethanol blended
unleaded petrol in 185 forecourts in London, South East and North West, and 5%
biodiesel is being rolled out in London and the South East.
7.3 Vehicles
The Bus Services Operator Grant (BSOG) is a grant paid by the DfT to reimburse
bus operators for some of the excise duty paid on the fuel consumed in operating
eligible local bus services52
. This varies according to fuel type, with the rates
currently (May 2007) as follows: diesel and 5% biodiesel 39.21ppl, petrol 36.83ppl,
LPG and CNG 10.81ppkg. Thus there is no incentive for bus operators to use
biofuels.
Car manufacturers are starting to address the issue of new biofuels coming into the
market place, with flexi-fuel vehicles (FFV). The Saab 9-5 BioPower FFV and the
Ford Focus FFV can both run on BioEthanol E85 or on petrol, with no adjustment
required by the driver. The 1.8-litre Focus FFV offers a 70% reduction in CO2
emissions compared to the same petrol-only model, when run on bioethanol53
.
E85 gives reduced mpg (miles per gallon) than petrol, due to bioethanol having lower
energy content than petrol. Thus the price for bioethanol should be lower than petrol,
in order to pay a comparable amount per mile. True, some people and companies
will pay more for a “greener” fuel, but the majority will buy whichever fuel gives the
best mpg.
Lotus is developing the Biofuel Supercar Exige 265E, which will run on E85. They are
also developing a variable compression, two-stroke car engine which will also be
able to run on varying biofuel/fossil fuel mixes. They are seeking funding for this
research.
In Brazil, 60% of all new cars can run on a fuel mix made up of 85% bioethanol.
Sweden is the European forerunner with approximately 23,000 flexifuel vehicles (in
2005). Ford has pioneered the Swedish market offering its Ford Focus FFV since
2001, first arriving in the UK in 2005.
In Sweden, in addition to benefiting from E85 fuel that is 25% cheaper than petrol,
FFV users are also exempted from city congestion and parking charges, as well as
qualifying for a 20% reduction in benefit tax if they are company car drivers. The
Swedish government wants 25% of fuel stations to have an E85 pump by 2008, and
to halve the current use of petrol and diesel road fuel by 2020.54
Renault suggests
that 50% of new EU cars in 2009 will be flexifuel.
Under the current European Motor Fuel Standard, the maximum limit for blending
biofuels is 5% by volume, with no vehicle modification required. Fuel quality
standards will need to be revised before vehicles can run on blends greater than 5%
without affecting the warrantees.
Renewables East are lobbying for fiscal incentives to assist niche fuels such as E85,
such as changes in company car tax.
52
http://www.dft.gov.uk/pgr/regional/buses/busgrants/bsog/
53
http://www.carpages.co.uk/ford/ford_focus_02_09_05.asp
54
http://www.telegraph.co.uk/motoring/main.jhtml?view=DETAILS&grid=A1&xml=/motoring/2006/1
1/25/nosplit/mfsaab25.xml

25
8 Research
Given the regional research competence and a strong East of England automotive
sector, research is a very real opportunity for the region. Many researchers are
optimistic that new technologies could, in 5-10 years time, produce second
generation biofuels from more advanced processes. Those technologies include
lingo-cellulosic technology for bioethanol and Fischer-Tropsch gasification
technology for biodiesel55
. There is a debate as to whether gasification is economic,
with some details in a recent DTI report56
. In future, not just agricultural products but
a wider range of feed stocks including woody material (forestry residues and fast-
growing trees), grass, seeds, nuts, pulses, algae and micro-organisms could be used
to make biofuels for transport.
Research is focussed on using the whole plant to produce biofuels, rather than
current methods that only use certain parts, e.g. the seed of oilseed rape, or the tap
root of sugar beet. Allowing these technologies to develop may offer much greater
carbon savings than first generation biofuels.
The British Bio-Alcohols Group has recently been established to investigate second
generation fuel production, which includes researchers from UEA, John Innes
Research Centre and the Institute of Food Research. In addition, the Biotechnology
and Biological Sciences Research Council (BBSRC) has recently announced
£13million of research grants to investigate the improvement and optimisation of
crops for use as biofuels57
. The BBSRC already funds a range of bioenergy projects
at institutes in the region.
The BioREGen project being undertaken by Renewables East is aimed at diverting
materials from landfill and adding value to them by the recovery of energy as
renewable heat or power. Projects are provided with free technical, regulatory and
planning advice. Technologies being considered are anaerobic digestion (methane
production for energy), gasification and combustion.
Renewables East are very involved in seeing how research can be brought together
with the commercial sector – this is an area where lobbying could assist, and ERP
may wish to endorse the research into new biofuels that is taking place in the region.
9. Conclusion
This report has outlined a range of issues related to biofuels, which are summarised
in the table below:
Table 3. Summary biofuel issues
Limitations to wider use of biofuels in
the East of England
Opportunities for overcoming
limitations
Little inclination to use biofuels Raise the profile of biofuels in the region
by influencing policy and increasing
public awareness
Very limited distribution infrastructure
and availability of biofuels
Captive fleets are an excellent way of
using biofuels, without the need for
extensive distribution networks.
Better understanding of the theoretical
capacity and limitations of biofuel
55
Greenpeace 2006 Over a Barrel: Reducing the UK and Europe’s Oil Dependency
56
DTI 2006 Global Watch Mission Report: Second Generation Transport
57
http://www.bbsrc.ac.uk/science/initiatives/bioenergy.html

26
production within the East of England
needed
Very limited availability of vehicles for
E85 and biomethane
Raise the profile of biofuel vehicles in the
region.
Encourage further research to expand
the number of vehicles able to use high
concentrations of biofuels.
No fiscal or monetary advantage The RTFO will ensure a certain volume
of biofuels is used.
Biofuels produced in the UK and EU offer domestic fuel security, and can make a
contribution to reducing CO2 emissions from transport, but only as part of an
integrated strategy that addresses other issues, such as congestion, and with
suitable sustainability standards to ensure reductions in CO2 emissions are achieved
without compromising the landscape, historic environment and biodiversity. This
must also be balanced with the effects increased biofuel crops will have on the food
crop market.
10. Outcomes and recommended actions for the EERA Environment and
Resources Panel
From the report a number of areas that require further work, influence and support
have been identified, which have been categorised under 3 outcomes. This if
followed by the three actions which RETAG recommends that the Panel focus on.
Outcome 1. Better understanding of the theoretical capacity and limitations of biofuel
production within the East of England in the context of EU and UK policy.
i. It is important to know theoretical capacity and limitations for growing biofuel
crops in the East of England, and where they can be processed into biofuels.
Existing information needs to be reviewed and focussed for this region.
ii. There is considerable existing data on the biodiversity and landscape impacts
of biofuels, including a recent report by the European Environment Agency,
which need collating and summarising.
iii. To lobby for the development and implementation of sustainable biofuels
certification at EU level as soon as possible and interim measures to prevent
the production and use of biofuels from unsustainable sources.
Outcome 2. Raise the profile of biofuels in the region by influencing policy and
increasing public awareness.
i. The EERA-led study on “Placing Renewables in the East of England” study
does not consider the biofuel production potential of the region. A similar
report but with a focus on 'biofuels, CO2 reduction and the transport sector'
would help develop Energy and Transport related policies to inform the review
of the RSS due to start in 2007.
ii. Ensure continuing support for the biofuels industry from EEDA through
contributions to the RES review process, including the consultation that will
start in Sept 2007; particularly to develop the infrastructure to support high-
blend markets and small scale production which are less likely to benefit from
the RTFO.

27
iii. To lobby for fuel rebates or other tax incentives to support higher blended
fuels and smaller local production which are less likely to benefit than low
blend mass market fuels from the RTFO.
iv. Encourage local authorities within the region to introduce exemptions or
reductions for parking permits and congestion charges, if schemes are
introduced, for Flexi Fuel Vehicles and other biofuel or fuel efficient vehicles.
The Greater London Authority however have not agreed to a congestion
charge waiver because Flexi Fuel Vehicles can also run on unleaded petrol
and only the driver knows what fuel is being used.
v. Lobby for company car tax reductions for Flexi Fuel Vehicles and other
biofuel or fuel efficient vehicles. Having a reduced company car tax for flexi
fuel vehicles could work by putting the onus on companies to produce
receipts to prove that a certain % of E85 fuel has been used over the year.
vi. Support for the use of biofuels within the region by encouraging Government
departments, County Councils, Local Authorities and the private sector to
invest in high blend biofuel vehicles fleets. In addition to lobbying government
to overcome barriers that make alternative fuels economically unattractive
such as the Bus Service Operators Grant.
Outcome 3. Support for academic and commercial R&D to further improve and
advance biofuels.
i. Greater recognition and support for the academic and commercial research
into new biofuels that is taking place in this region. There is a huge potential
in the sector of research for biofuel crops and the biochemical aspects of
producing ‘second generation’ biofuels in the region. We also have a superb
automotive research sector. It should be noted that a bid by Cambridge
University for BP to establish their Biosciences Institute in the UK for Biofuels
was unsuccessful (it went to the US). Further efforts could be made to
support Renewables East’s current drive to encourage similar R&D initiatives
in order to establish ‘a virtual hub’ of research in this Region.
ii. Greater recognition and support for the work at Hethel by Lotus to develop
bioethanol fuelled cars. Renewables East and Lotus are currently working
together, looking to how the region can best take advantage of the
opportunities mentioned above.
iii. Research into the capacity for and best use of biofuels from waste in the
region, be it electricity, heating or vehicles.
Recommendations for the EERA Environment and Resources Panel
As the Panel does not have the capacity to address all of the above, it is
recommended that the work of Panel focus on the following areas:
iv. Greater recognition and support for the existing expertise within the
region’s research institutes and automotive sector which if harnessed
together could provide significant advances in biofuel development and
utilisation as well as realising economic benefit for the East of England.
There is a potential to generate biogas/biomethane from grown crops as
well as regional domestic, commercial and agricultural residues. As
quantities are not precise more work needs to be done to predict the full
capacity for gas recovery from waste and the economic ‘tipping points’ for
its use in transport rather than power production.

28
Both areas could also provide indicators as to the best use of land in
providing biofuels and improved crop yields achieved by targeted
breeding.
Renewables East is already considering mechanisms and potential
research by which the opportunities might be achieved
The Panel should endorse support for maximising such potential and offer
to help promote and implement any recommendations that are made as a
result.
v. To raise the profile of biofuels by encouraging the Public Sector in the
region to use and promote the use of alternative fuels. In this respect,
consideration should be given to developing an information package
explaining the opportunities available to local authorities to encourage the
use of fuel efficient vehicles and the use of alternative fuels in public
sector fleet vehicles. The Panel can also provide regional representation
to the Government for assistance in overcoming barriers that are
encountered when trying to convert to alternative fuels (eg BSOG).
vi. To encourage the development and implementation of appropriate
sustainability standards for biofuels. A recent and current consultation
have addressed this issue:
 DfT consultation on the Renewable Transport Fuel Obligation Order;
and
 European Commission consultation on biofuel issues in the new
legislation on the promotion of renewable energy.
Although the UK Government has been campaigning for EU-wide
standards, the Panel should engage in the process of developing these
standards to ensure they are appropriate to protect against adverse
environmental and social impacts, and that the standards are used to
increase the awareness about the real facts and potential benefits of
biofuels.
Thanks to the NFU, the Highway Agency and colleagues in Natural England, EEDA
and RETAG for comments.

EERA_Paper_2007

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