Review deals major blow to North biofuel industry
Jul 8 2008 by Karen Dent, The Journal
THE North East’s biofuel sector has been dealt a blow after a long-awaited Government report concluded that the fast growth of the industry should be slowed.
The Gallagher Review into the indirect effects of biofuel production, published yesterday, said the brake should be applied to fuels’ introduction until effective controls had been put in place to stop land for food crops being taken over by fuel crops.
It suggested the rush to develop biofuels had contributed to the higher cost of food.
Review chairman, Professor Ed Gallagher of the Renewable Fuels Agency , said: “Our review makes clear that the risks of negative impacts from biofuels are real and significant, but also lays out a path for a truly sustainable biofuels industry in the future.”
It casts doubt over the Government’s ambitious targets to increase the amount of energy generated by biofuels.
In April, the Renewable Transport Fuels Obligation was introduced, requiring that all petrol and diesel sold in the UK to contain at least 2.5% biofuel, increasing to 5% by 2010 – a rise of 1.25% a year. But yesterday’s review proposed that the target should only be increased by 0.5% annually.
In a statement to the Commons, Transport Secretary Ruth Kelly said the Government would consult on slowing this rate.
She said: “This Government has always been clear that biofuels can only make a useful contribution to mitigating climate change if they are sustainably produced.
“I agree with Professor Gallagher that we should take a precautionary approach over the next few years, until we are clearer about their wider effects on the environment. Our policy should be based on the best possible science and as the evidence evolves, so too should our policy evolve with it.”
Ian Brown, a One NorthEast board member with responsibility for rural issues, said there was no simple answer to the food versus fuel conundrum. “The politics of food is very complex, especially if people do not want genetically modified crops,” he said. “We have had very low world stocks for around 25 years.”
ONE is investing £1.7m over three years to attract further biofuel production to the region.
Teesside is already home to alternative energy companies including Ensus, Helius Energy and the Biofuels Corporation. The sector is predicted to create around 1,000 jobs in the region within three to five years, according to the North East Process Industry Cluster which oversees industry umbrella group Northeast Biofuels.
PAGE TWO: A black day for Teesside.
