£25m fund for sustainable UK biofuel projects

A £25 million fund has been launched for the construction of waste-to-energy and other advanced biofuel plants in the UK. Companies can bid for a share of the fund by […]

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By Priyanka Shrestha

A £25 million fund has been launched for the construction of waste-to-energy and other advanced biofuel plants in the UK.

Companies can bid for a share of the fund by proposing new ideas for viable demonstration-scale plants that can drive the development of the UK’s biofuel industry. The cash will be made available by the Department for Transport (DfT) over three years starting from 2015.

Advanced biofuels are made from materials such as municipal waste and forest residues using complex techniques and can help produce a wide range of transport fuels, including cars and aeroplanes.

Transport Minister Norman Baker said: “I am delighted that we are able to support these innovative technologies and believe that they will bring significant benefits to the UK. 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.

“It is clear that in the long term advanced biofuels will be important in areas that we cannot otherwise decarbonise such as aviation. This announcement will help put the UK in a good position to meet this demand.”

Further details of the competition will be provided later this year.

The Renewable Energy Association (REA) welcomed the announcement, however, it claims the “unclear” policy framework still hinders investment.

Clare Wenner, Head of Renewable Transport said: “We urge 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.”

The EU transport sector saw a rise in biofuel use in 2012 as reported by ELN earlier this week.