Biofuels

Biofuel drive gets energy boost

Plans for the UK's first large-scale biodiesel processing plant have been unveiled by Scotland's largest renderer of animal residues. But it is unlikely that oilseed growers will benefit from the £10 million plant, that will turn animal residues, fats and used cooking oils into 50 million litres of fuel per year.

The news from Argent Group Europe comes soon after the Chancellor's pre-budget announcement of a 20ppl cut in duty for bioethanol. The two are unrelated, however, said National Farmers Union Parliamentary Affairs specialist Barney Holbeche.

"I'm sure the Treasury will see this as evidence that the tax breaks it has offered has helped get biofuels off the ground," he said.

"But the evidence we've seen from British Sugar, Banks Cargill and others suggests the government has not gone far enough."

Lobbying for a tax concession on all biofuels of 30ppl was stepped up a gear following the Chancellor's announcement.

NFU Alternative Crops Chairman Rad Thomas said the union would grasp every opportunity to press the Government to make green fuels viable.

And there were signs that MPs and peers are supporting the moves.

More than 50 MPs are expected to attend a joint NFU/Country Land and Business Association Green Power from the Land reception in Westminster on Wednesday (11 December).

On Thursday (5 December), the House of Lords will host a debate on the environmental, economic and agricultural advantages of bio-fuels. And a debate entitled Powering Future Vehicles Strategy will take place in Westminster Hall on 12 December.

"Many MPs see biofuels as a win-win issue," said Mr Holbeche. "The Chancellor's statement shows the government sees this as a case worth supporting.