Biofuels will solve energy crisis
The impending fuel protests should be the catalyst to prompt UK Government to kick-start the UK's biofuels industry, says the NFU.
The leading trade association is urging Government to implement the Renewable Transport Fuel Obligation to source 5.75% of road transport fuel from renewable sources by 2010, in line with EU targets. The NFU has research to show that farmers can already produce biodiesel (a green fuel) from oilseed rape at a price that competes very favourably with fossil fuels at the pump.
NFU South East regional director William White said: "It's not a case of farmers asking for subsidies – we're looking to Government for innovative policies to get a biofuels industry off the ground, bringing widespread environmental benefits for all. Fossil fuels are a diminishing resource and Hurricane Katrina has given us all a wake-up call to the threat of global warming. UK farmers are in a strong position to help tackle climate change. Government should implement the Renewable Transport Fuel Obligation and accelerated capital investment allowances towards infrastructure for biofuel production."
Kent farmer Andrew Martin, an NFU and Tenant Farmers' Association member, from Romney Marsh, said: "It seems to me a lost opportunity if our politicians only react to the current crisis by encouraging OPEC*2 to increase production. For the past year, I have been working on a project – funded by SEEDA – to investigate the feasibility of producing biodiesel on farms and we can produce it for a pump price of 85 pence per litre."
Mr Martin, whose fact-finding has taken him to biofuel production centres in the Czech Republic, added: "Other European countries are streets ahead of the UK. Farmer can produce biofuels economically and sustainably here – and we're keen to press ahead."
The NFU has acknowledged that the Treasury is reluctant to increase the 20 pence per litre concession already made on biofuels duty. It is looking to Government to offer capital allowances for investment in infrastructure for biofuels.
