But unclear policy framework still hinders investment
The REA welcomes the launch today of a £25 million Government competition to drive forward the development of advanced biofuels in the UK . However, certainty in the framework for current generation biofuels is what investors really need to be able to confidently invest in the fuels of the future.
REA Head of Renewable Transport Clare Wenner said:
“The REA welcomes this new funding for demonstration-scale advanced biofuels plants. Advanced biofuels, made using unconventional methods and feedstocks including wastes, can achieve exceptionally high environmental performance. The UK could certainly take a lead in developing advanced biofuels, spurring growth and creating jobs in a new industry.
“We urge Government to give investors a signal that the regulatory framework for renewable transport fuels will be extended beyond 2020 to at least 2030, to give entrants to the competition assurance that their investments will be underpinned by legislation.”
Speaking in The Guardian , Transport Minister Norman Baker said “What we need to do is distinguish between good biofuels and bad biofuels, and this competition will produce good biofuels.”
Clare Wenner responded:
“The Minister is absolutely right to say that advanced biofuels are ‘good’. But it is misleading to imply that current biofuels are ‘bad’. Current biofuels, which meet strict sustainability criteria, can make a major contribution to renewable energy and emissions reduction targets in the short term, and enable the investments for R&D into advanced biofuels, with even better environmental performance, over the medium term. The key missing ingredient for both is a clear and supportive policy framework.”