Features:

Making sense of biofuels

10th August January, 2007

The fledgling UK biofuels industry has been subject to much speculation since the government announced plans for a Renewable Transport Fuel Obligation (RTFO) in November 2005. The Home- Grown Cereals Authority (HGCA), the levy board responsible for improving the production and marketing of UK cereals and oilseeds, has been working to dispel some of the misconceptions about biofuels which currently exist.

Biofuels and land use

Some concerns have been raised that there is not enough land to produce cereals for use in food and drink, as well as in biofuels. This issue is a global one, requiring a global solution. Places such as eastern Europe have the potential for additional planting and more efficient yields. If prices increase on the world market, so will the commercial viability of growing grain in a sustainable manner in these areas.

There is also the possibility of using set-aside land, much of which is currently fallow and which accounts for five million hectares of land in the EU alone, with the potential to grow around 40 million tonnes of cereals.

The RTFO dictates that fuel companies will be obliged to include 5% biofuels in their petrol and diesel products by 2010/11. (This is an increase from 2.5% in 2008/9 and 3.75% in 2009/10). Assuming that the cereals and oilseeds necessary to deliver a 5% inclusion are produced domestically, this should be achievable given the following conditions:

• Plantings have reduced over the last few years and would increase given a favourable market
• Some set-aside will be used, although not all will be suitable for growing crops for biofuels
• Crops grown for biofuels also produce co-products that can be used for animal feed. Therefore, fewer crops will need to be grown for this purpose
• The UK currently exports between 2 and 3 million tonnes of wheat every year - a large percentage of this could be used for biofuels production.

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