Biofuels blow

Dec 5 2008 By Andrew Mernin

An error in drafting the rules on introducing biofuels into the UK fuel supply is forcing companies which produce them out of business, an industry body claimed today.

The Renewable Transport Fuels Obligation (RTFO) requires suppliers to source a small but rising percentage of vehicle fuel from biological sources, such as sugar beet or maize.

But a mistake in the Government regulations means the obligation does not include any fuel that already has some biofuels in it at the point it is counted - even if it is just ``a thimble-full", according the Renewable Energy Association’s Clare Wenner.

Ms Wenner, head of renewable transport fuels at the REA, said the error meant far less biofuels were needed than the 2.5% obligation introduced in April, forcing companies which supply the fuels to lay off jobs or close down altogether.

She said she had been told that it was not possible to retrospectively correct the mistake, and it could not be amended until April 2009, when the speed of introduction of the fuels is also likely to be changed.