WIREDGOV

Press release on the RFA's half yearly report

RENEWABLE FUELS AGENCY News Release issued by COI News Distribution Service. 15 January 2009

RFA reports progress on biofuel sustainability, but poor performers drag RTFO below target

The Renewable Fuels Agency today released provisional data on biofuels supplied to UK forecourts in the first 6 months of the RTFO1,2. Several fossil fuel companies (ConocoPhillips, Greenergy and Mabanaft) are currently above all three of the Government's 2008/09 targets for biofuel sustainability, showing that good performance is achievable.

However, the RFA is disappointed that other companies are currently well below some targets. In particular, Chevron, Esso, Murco, Prax and Topaz have so far failed to supply any fuel meeting sustainability standards3, with Prax and Topaz failing to report any data at all on the origins of their biofuels. This suggests that it is unlikely that these companies will meet the Government target for the year that 30% of biofuel should meet environmental sustainability standards.

Currently, 20% overall of biofuel is meeting environmental sustainability standards, below the Government's 30% target. There are 9 fossil fuel companies performing well below the target, and until these start sourcing more certified sustainable fuel it will be very hard to reach.

RFA CEO Nick Goodall commented, 'We believe that biofuels should be sustainable. The first half year's experience of the RTFO in the UK, and the good performance of several companies, are demonstrating that the biofuels industry can meet sustainability standards. The challenge for us now is to raise performance across the board.'

This quarter has seen the first delivery of biofuel from Brazilian sugar cane meeting the RTFO social sustainability meta-standard, by fuel supplier Greenergy4. This is the 'gold standard' for biofuels produced with respect for worker's rights and land rights. There is no existing certification program for Brazilian sugar cane that meets the RTFO standard, so it is encouraging that we can report a supplier carrying out independent audits of production.

Aaron Berry, the RFA's Head of Carbon and Sustainability, said, 'We are pleased to see that Greenergy has started implementing the meta-standard, and that the RTFO is encouraging suppliers to adopt best practise on sustainability. The RTFO is, after all, intended to create a market for biofuels meeting this meta-standard.'

The RFA also reported the first supply under the RTFO of biogas from waste for road transport. Bio-methane produced by anaerobic digestion of organic landfill waste or manure is a good example of a sustainable biofuel.

Obligation performance is currently ahead of the overall target for carbon savings, delivering a 47% saving (against a 40% target). This does not include indirect emissions as identified in the Gallagher review. However, the European Commission is expected to identify a mechanism to account for these under the Renewable Energy Directive by 2010.

66% of required data has been reported, well above the target of 50%.

For further information:

Contact Chris Malins on 020 7944 8454 or by email to enquiries@renewablefuelsagency.org.

Explanatory notes

1. The RTFO applies across the whole of the UK. Refiners, importers and any others who supply more than 450,000 litres of relevant hydrocarbon oil annually to the UK market are obligated by it. Due to a misdrafting in the RTFO Order, this does not currently include fossil fuel supplied blended with biofuel.

2. This provisional data comes from monthly reports submitted by fuel suppliers to the RFA. The RFA performs checks on the data, which is also subject to an annual verification process by independent auditors. The RFA will publish a final, fully verified dataset in January 2010.

3. 30% of feedstocks should meet environmental sustainability standards in the year 2008-9. The ability of suppliers to source certifiably sustainable fuels is currently limited, as the British ACCS scheme is the only qualifying environmental standard that is well established. Certified sustainable feedstock is expected to become increasingly available over time, as feedstock standards develop in response to the demand created by the RTFO and growing concern about the sustainability of agricultural commodities more widely.

4. Details about Greenergy's sugar cane audit programme are available from their website http://www.greenergy.com/feedstock_sourcing/bioethanol_auditing.html.

Background

The RFA, a Government Non-Departmental Public Body (NDPB), is the UK's independent sustainable fuels regulator.

Smaller biofuel companies that supply little or no fossil fuel, such as those supplying recycled cooking oil, can also claim RTFO certificates. Nearly all of these companies met all three targets.

The European Union is expected to publish the Renewable Energy Directive later this month, which sets mandatory renewable fuel targets for 2020 including Europe-wide sustainability standards. The UK will need to adapt to the new requirements when they come into force. The UK currently has the highest reporting standards in the world.

The Government has recently consulted on reducing the volume targets in the RTFO in the light of the Gallagher review.