To ask the Secretary of State for Transport, what steps his Department is taking to encourage the domestic production of biofuels.
The Renewable Transport Fuel Obligation (RTFO) has been successful in promoting a market for sustainable renewable fuels. Long term targets set in legislation have given companies the confidence to invest in Wales and across the UK.
Companies that supply at least 450,000 litres of fossil fuels are obligated to supply a certain amount of renewable fuel under the RTFO. Companies can also register voluntarily to be able to receive RTFO certificates. Currently, there are 50 UK registered suppliers, with one supplier having a registered address in Wales.
The Department is encouraging further investment in renewable fuels in the UK through its multimillion pound innovation competitions. Competitively awarded grants have been provided to support the construction of several commercial-scale plants in the UK. This includes the Future Fuels for Flight and Freight Competition (F4C) which was launched in 2017 and makes up to £20 million in capital funding available. Among the shortlisted projects of the competition, one of the companies is looking to locate in Wales.