The UK biofuel industry will benefit from a £25million boost to fund a new advanced biofuel plant.
The money, which will be available from 2015, is to support private sector investment in at least one demonstration-scale advanced biofuel plants, transport minister Norman Baker announced.
“There are real opportunities for the UK to take a technological lead, driving growth, creating highly skilled jobs and seeing energy, security and environmental benefits,” Baker said.
“It is clear that in the long term advanced biofuels will be important in areas that we cannot otherwise decarbonise, such as aviation.”
The funding will be provided over three years, following a competition to identify the most suitable industry proposal.
Ed Davey, energy and climate change secretary, said that the funding will help achieve the country’s low-carbon targets for 2020.
“There is significant potential for growth in biofuel use, in low carbon vehicles and other sectors, if advanced technologies are harnessed,” Davey said.
“This funding will give the industry the boost it needs to develop this innovative, low carbon market.”
The Renewable Energy Association agreed that the biofuels competition could make the UK a leader in developing advanced biofuels and encourage economic growth.
But the industry body warned that laws on current generation biofuels have to be clarified to give the sector the confidence to invest in future fuels.
“Current biofuels, which meet strict sustainability criteria, can make a major contribution to renewable energy and emissions reduction targets in the short term, and enable the investments for R&D into advanced biofuels, with even better environmental performance, over the medium term,” said Clare Wenner, head of renewable transport at REA.
“We urge the government to give investors a signal that the regulatory framework for renewable transport fuels will be extended beyond 2020 to at least 2030, to give entrants to the competition assurance that their investments will be underpinned by legislation.”
Recommended for you
