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Renewable Transport Fuel Obligation (RTFO) Update September 2017

The UK Department for Transport’ (DfT) responded to its consultation on the Renewable Transport Fuel Obligation (RTFO) in September 2017 very positively, from the point of view of the UK anaerobic digestion and biogas industry, because the proposed new rates to be offered under the RTFO turned out to be better than they the industry leaders had asked for.

In reply to the concern that the renewable transport fuel certificates price dwindle further, after the Renewable Transport Fuel Obligation (RTFO) consultation (also called; RTFO 2017, or DFT RTFO consultation), it appears that the RTFO certificate price, when eventually incorporated into UK statute will in reality be good, and will be aimed at a price which will encourage AD Plant investment.

PRESS RELEASE: Biomethane perfectly positioned to meet new renewable fuel targets – ADBA

Watch the full release in the video, or scroll down and read the PR below:

Posted on 15 Sep, 2017 by Chris Noyce

The UK’s trade body for anaerobic digestion (AD) has welcomed the Department for Transport’s (DfT’s) response to its consultation on the Renewable Transport Fuel Obligation (RTFO), declaring biomethane to be ‘perfectly positioned’ to meet increased targets for renewable fuels.

ADBA’s Chris Huhne in Bio-Bug CC BY-NC-ND by DECCgovuk

DfT’s reforms will obligate fuel suppliers to provide 9.75% of all fuels from renewable sources by 2020, a doubling of the current 4.75% obligation that will then rise to 12.4% of all fuels by 2032, helping to align the RTFO with the Government’s Carbon Budgets. Biomethane produced through the recycling of organic wastes and energy crops is one such fuel derived from renewable sources that can help fuel suppliers to meet this new higher target, particularly for heavier vehicles for which electrification is impractical or expensive.

With more than 80 AD plants across the UK already producing biomethane, the UK AD industry has sufficient capacity today to produce enough biomethane to power 80% of the UK’s entire bus fleet and the potential to produce enough biomethane to power 75% of all HGVs in the UK. It can also be used directly on farms to fuel agricultural vehicles.

Charlotte Morton, Chief Executive of the Anaerobic Digestion & Bioresources Association (ADBA), said of DfT’s response to the RTFO consultation:

ADBA greatly welcomes DfT’s increased commitment to supporting low-carbon fuels, which are essential for decarbonising the UK’s emissions-heavy transport sector and meeting our Carbon Budgets.

The rising of the obligation for renewable-sourced fuels to 12.4% by 2032 goes beyond what was originally consulted on and will create a positive investment environment for renewable fuels. As a low-carbon, low-cost, and technology-ready transport fuel that can deliver £2.1 bn in CO2e savings per year and dramatically improve air quality, biomethane is perfectly positioned to play a leading role in helping fuel suppliers to meet these increased targets.

This news represents a huge opportunity for biomethane and will give plenty of food for thought and discussion at the ADBA Biomethane & Gas Vehicle Conference taking place in Leeds the week after next.

To see this Press Release on the ADBA website click here.

For more information contact Chris Noyce, ADBA PR & Parliamentary Affairs Executive: 020 3176 5441 / chris.noyce@adbioresources.org

Renewable Transport Fuel Obligation (RTFO) Consultation also known as; RTFO 2017, or DFT RTFO Consultation – Conclusion

Renewable Transport Fuel Obligation RTFO 2017 thumbnail size image.It is fair to say that the predicted RTFO statistics in new anaerobic digestion plant starts which the Renewable Transport Fuel Obligation consultation (RTFO 2017) should bring into reality, will be beyond the expectations in the DFT RTFO consultation.

The higher price will no doubt bring forward more positive RTFO guidance, in due course from the industry experts, as a consequence of the forthcoming higher RTFO market price (Renewable Transport Fuel Certificates Price).

 

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