Global Commodities continues to invest in biodiesel. Why isn’t the government?

On 30th November, Global Commodities announced the acquisition of a new bio-diesel production factory in Norfolk, with the capacity to produce 100 million litres of bio-diesel per year. With this and the new factory in Hull, with a capacity to produce 250 million litre a year, Global Commodities will become the biggest independent producer of bio-diesel in the world, an achievement funded entirely by entrepreneur Dennis Thouless, Chairman and Co-Founder of the company, with no grant or support from the

Government. So with Global Commodities continuing to invest in UK

production of bio-diesel, the eco-friendly fuel, now's the time to ask - why isn't the Government?

Dennis Thouless asks: "Why is duty on bio-fuels in the UK 27 pence per litre, when in Germany they pay nothing? We demand at least a 12 pence reduction. This will not put us on a level playing field with Europe of course, but it will make it a viable option for manufacturers in producing biodiesel from rape oil. Sadly, once again Britain seriously lags behind its European neighbours. Another British industry could go down the drain even before it has taken off. Global Commodities calls upon Tony Blair to take some serious action - bring us on par with Europe and start seriously supporting bio-diesel production in the UK. We desperately need this backing to secure investor confidence in the UK bio-diesel industry, to achieve better economies of scale and to become a real competitor of fossil fuels. Only then can we start to have a real impact on the reduction of carbon emissions – which of course, will have enormous benefits for all of our futures."

In April 2005, the market share of renewable fuels in the UK was just 0.2 per cent. The Government obligation has now been set to achieve 5 per cent biofuels market share by 2010. Dennis continues, "Yes the Government has set a target for 2010 but how are we going to get there? What are they doing now? And what support is in place to achieve the target? We desperately need government backing now to secure investor confidence in the UK bio-diesel industry, to achieve better economies of scale and to become a real competitor to fossil fuels. The Government has set the 2010 target without a plan in place – a case of the kart before the horse! Give the UK bio-fuels industry a chance to meet this target Tony – get behind UK bio-diesel production, cut duties and encourage confidence in the market. Bio-diesel has the potential to be on every forecourt in the UK – but only if you give it a chance."

"Increased bio-diesel production in the UK has significant benefits for all our futures and it can help solve many political issues, currently unsolved and unsupported. Bio-diesel has the potential to reduce carbon emissions produced by the transport sector by 25 per cent, yet costs nothing for the consumer – the price and number of miles per gallon stays the same and it can be used in any diesel car. Biodiesel production helps us become self sufficient as a country, having to depend less on fuel from other countries and in turn provides a well-needed boost to the agricultural economy, which is more in debt now than ever before; for example, through the production of 1,000 tonnes of biofuels in the UK an estimated 2-5.5 farming jobs will be created."

Supporting Global Commodities, and representing the farming community on the 30th November, was Viscount Coke. Representatives from the University of East Anglia's carbon reduction initiative, CRED were also present and Baroness Gillian Shepherd lent her support to the day, issuing a statement congratulating Dennis Thouless "on his enterprise and foresight". She

continued: "[Dennis] is setting a practical example for the Government to follow…and pointing the way forward". Please see Gillian's full statement attached.