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Energy: Biofuels

House of Lords written question – answered on 6th April 2011.

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Photo of Lord Bradshaw Lord Bradshaw Liberal Democrat

To ask Her Majesty's Government, further to the Written Answer by Lord Marland on 28 March (WA 211), what assessment they have made of whether the proposed amendment to the renewable transport fuel obligation will compensate for the 20 pence per litre tax increase for used cooking oil biodiesel due to come into force in April 2012.

Photo of Earl Attlee Earl Attlee Lords Spokesperson (Department for Transport), Lord in Waiting (HM Household) (Whip)

We are currently consulting on proposals to amend the Renewable Transport Fuel Obligation (RTFO). These proposals include amending the RTFO so that biofuels from waste may be awarded two renewable transport fuel certificates (RTFCs) per litre, as opposed to one RTFC now.

Our expectation is that double certification for waste-derived biofuel under the RTFO will provide a level of support broadly equivalent to the duty differential currently in place. The most recent publicly quoted renewable transport fuel certificate price is 24 pence. At this price level, issuing an additional certificate for used cooking oil biodiesel is slightly more generous than the 20 pence duty differential. However, the value of RTFCs is determined by the market and may fluctuate over time.

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