Biofuels industry upbeat despite RTFO "backsliding"

London - The UK biofuels industry is forecasting significant growth over the next 10 years despite concern over any delay in implementing the Renewable Transport Fuel Obligation (RTFO) - as called for in the recently published Gallagher report into the sustainability of biofuels production and its impact on food supply.

Alwyn Hughes, chief executive of Ensus, which is building Europe's largest biorefinery on Teesside in the North East of England, welcomed the Government report. The findings, he said, showed that biofuels can be produced sustainably and backed efforts to ensure that 'good' biofuels are supported as part of the UK's renewable energy strategy.

However, Hughes added: "We are very concerned at the suggestion of backtracking on existing commitments under the RTFO. We think this is unnecessary when sustainable production can already be achieved. Such a move would only serve to jeopardise the industry's ability to deliver the substantial benefits that are possible. Furthermore this runs the risk of frightening off the very investment in renewable energy that the Government is relying on to meet their own climate change targets."

Against this, the Ensus boss noted the Gallagher review's recognition of the importance of the protein co-products. "Producing food alongside fuel in the same process greatly reduces the amount of land required for biofuels - increasing the efficiency of the food supply chain and alleviating pressure on deforestation through reduced requirements for imports of soy," he stated.

"We think that the Government is absolutely right to focus on sustainability and, in the case of Ensus, what we produce are sustainable biofuels. The bioethanol we supply will deliver carbon savings in the order of 70% relative to the fossil fuels displaced. Furthermore, all of the protein from the wheat feedstock is conserved and recycled straight back into the food chain, thus ensuring none of it is Œlost¹. Our model means it¹s not about food vs. fuel. It¹s food and fuel," concluded Hughes.

Much of the UK's existing biofuels production is based in the North East, where industry bodies Northeast Biofuels (NEB) and the North East Process Industry Cluster (NEPIC) have highlighted their continued support for the industry.  Regional Development Agency One NorthEast, meanwhile, has pledged £1.7million over the next three years to attract global producers to invest in sustainable biofuels production. .

NEPIC and NEB described the Government report as "generally positive" in that it aims to ensure biofuels production is sustainable, pointing out that it asks for transport fuel suppliers to achieve a high level of greenhouse gas savings of over 75%. NEB also points to recent research showing that the use of locally grown oilseed rape feedstock can deliver a 94% reduction in carbon dioxide emissions compared to the production of ultra low sulphur diesel.

Regional bioethanol production will deliver both significant carbon savings and also in relation to food versus fuel, the process will capture all of the proteinfrom the wheat for animal feed. The North East region is undertaking work on a number of advanced biofuel projects which are identified by the report as necessary for the UK to meet its overall renewable energy targets.

The Ensus plant will have an annual production capacity of over 400 million litres, making it the largest production facility in Europe. It will manufacture bioethanol using established technology to ferment and distil wheat grain. The ethanol produced will be water soluble, biodegradable and non-toxic. Construction of the plant has started and is expected to enter production in early 2009.

The Wilton plant will be the first indigenous world scale bioethanol production facility in the UK- which is currently dependant on imports for its bioethanol fuel. The Group's first plant will use the established and proven dry milling process technology and will be at the Wilton International site in Teesside.