NFU applauds consultation on RTFO but disappointed it comes too late for Vivergo

In the UK, the promise of a consultation on how low carbon fuels are rewarded under the Renewable Transport Fuel Obligation, potentially leading to the crop cap being removed, and the exploration of moving beyond E10 fuels are key among the changes the Department for Transport has outlined following NFU lobbying. 

The DfT (Department for Transport) has published an update to government policy as part of its RTFO (Renewable Transport Fuel Obligation) statutory review. The RTFO sets annual obligations for fuel suppliers to ensure a certain percentage of renewable, low carbon fuel is supplied to road vehicles, non-road mobile machinery and other surface transport modes.

In the update, published last week, the DfT has provided assurances that its future work would include:

·      A consultation on the broader RTFO scheme containing proposals for the future target trajectory, including options for increased targets and improving the development fuel obligation.

·      A call for evidence, to be published later in 2025, on the eligibility of different types of crops in the SAF (Sustainable Aviation Fuel) mandate.

·      Convening an expert working group to explore whether ethanol blending in petrol can be increased beyond E10 (10%) in the UK.

The NFU is pleased to see that DfT has listened to its calls for enhanced long-term opportunities for UK growers to supply domestic biofuel plants, however, it has expressed frustration at the timescales at which change is likely to be delivered.

It is also disappointing that this announcement comes alongside the decision by the UK government to not provide the essential short-term support needed to keep the UK’s two bioethanol plants viable. This has already resulted in the closure of Vivergo, the one plant which consistently uses UK wheat, while the future of Ensus, which reportedly uses imported grains more so than UK grains, remains in the balance.