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Colonial FIrst State Britain Signals Increased Target for Biofuels Use

Date: 12-Jul-06
Country: UK

"We also intend that the level of the Renewable Transport Fuel Obligation should rise above five percent after 2010/11," the review issued by the Department of Trade and Industry said.

The five percent target was set in November 2005 and required a 20-fold increase in biofuels use when issued. Plans have since been unveiled by private companies to build several major new plants in Britain to produce biofuels.

"Provided certain conditions are met, and for example we were able to raise the level of obligation to 10 percent by 2015, we would save a further million tonnes of carbon a year, equivalent to removing 1 million cars from our roads," it said.

Biofuels can be substituted for fossil fuels and are seen as a way to reduce the emission of greenhouse gases which are believed to contribute to global warming.

Fuels normally consist of a maximum of 5 percent biofuels in Europe due to limits imposed by manufacturer warranties although in some parts of the world much higher limits are normal. In Brazil, many cars run on 100 percent bioethanol.

Andrew Owens, chief executive of UK biofuels supplier Greenergy, said a 10 percent target by 2015 would be "catching up with where the market is anyway," noting he expected use to be closer to 10 percent than 5 percent by 2012.

European regulators are considering raising the amount of biofuels that can be blended into conventional motor fuel to 10 percent, with a decision expected before 2010.

Owens said an increase in the inclusion rate would be a huge boost for the biofuels industry.

The Renewable Energy Association welcome the increased biofuels target and Britain's endorsement of more widespread use of renewables although chief executive Philip Wolfe called on the government to back tat up with effective policy measures.

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