Biofuels companies slam parliamentary report

Jan 23 2008 By Sue Scott, Evening Gazette

BIOFUELS companies have slammed a parliamentary report calling for the brakes to be put on the industry.

As Europe prepares today to ramp up the UK’s total renewable energy target, the sector on Teesside said scrapping the government’s biofuels commitments, partly because of concern over world food prices, would be a disaster, not just for Teesside, but the planet.

With the renewable energy sector worth several million pounds to the local economy, Tees’ emerging cluster has more to lose than anywhere else in the UK should the government backtrack.

Current energy use from renewables in the UK is just 2%. European is expected to propose that rises to 15% by 2020 as part of its assault on greenhouse gases. As part of the package, it is likely to insist that 10% of Europe’s petrol and diesel come from biofuels.

In April, the new Road Transport Fuel Obligation will force suppliers to include 5% of biofuels in all sales.

Local industry leaders said it would be a disaster not just for Teesside, but the planet, if it the government back-tracked on its commitment.

"Calling for a ban on biofuels targets does nothing to help the biofuels industry," said spokesman for Middlesbrough-based D1 Oils. "It also undermines those companies who are investing in sustainable alternative crops, such as non-food crops like Jatropha curcas, as future raw materials for biofuel."

The company has invested in an £80m joint venture with BP to plant a new generation of bio-crops