Saeefar Rehman, associate director, energy and environment, Grant Thornton UK LLP, says the transition to a transport system based on a sustainable and renewable fuel supply, which meets government long-term carbon and emissions aspirations, is really gaining momentum.
The government’s intentions to bring an end to the use of the conventional road vehicle by 2040 are now well documented and the recent announcements from major car manufacturers to have electric, or at the very least, hybrid versions of every car within the next 10 years, only reaffirms that. At the same time, the technology for better and cheaper batteries is evolving almost daily.
However, it is not going to be a straightforward transition to zero-emission roads, even if the target date of 2050 feels a long way off. In terms of electric vehicles, there are major concerns being raised by the Distribution Network Operators (DNOs) about having the charging infrastructure in place to meet expected growth in electric vehicles.
The application and adherence of the waste hierarchy and directives within the RTFO framework will also ensure consistency with the established and understood waste definitions.
There is also the small matter of the UK’s lorry and other large diesel vehicle fleets to decarbonise. A key part of the government’s armoury in this transition period is the Renewable Transport Fuel Obligations (RTFO) Order to drive the development of renewable and sustainable fuel supply.
The government recently announced updates to the Renewable Transport Fuel Obligations Order (RTFO) following a market consultation process. The main outcome being an extension to, and increase in, the level of RTFOs.
The update set an increased target for 9.75% of all fuels to come from renewable sources by 2020, rising to 12.4% by 2032. This process reiterated the government’s view of the importance of biofuels and the consultation also provided insight in to the opinions of the industry and the other relevant parties that took part.
Waste Feedstock
From the waste industry’s perspective, the government’s confirmation (following responses from the market) that renewable fuels will be eligible for development fuel Renewable Transport Fuel Certificates (RTFCs) – the biofuel equivalent of the old ROC regime for renewable energy production – is welcome news, particularly as waste qualifies as an eligible feedstock.
The application and adherence of the waste hierarchy and directives within the RTFO framework will also ensure consistency with the established and understood waste definitions.
The 4% cap is in excess of the current expectations around future levels of demand. The use of land for the production of crops to develop fuels, as opposed to food, is not viewed as a responsible long-term activity.
Of particular interest is the opportunity to use waste, and waste derived fuels, to develop bio-fuels that could be blended in ratios of 25%, or greater, and still meet the relevant fuel standards for petrol and diesel. These inputs would qualify for development RTFCs and the double reward (which is set at £0.80 per certificate) where a certificate is available for every litre of biofuel produced.
Whilst the biogenic content of the waste input can vary this is nonetheless a significant amount of support. Not only does this offer another alternative to the utilisation of waste, it also provides a sustainable and renewable fuel source for the near future.
Coupled with the fact that aviation fuel is also included in the list as qualifying as a development fuel, and no feasible alternatives to ‘conventional fuels’ for use in aircraft currently exist, the use of waste in producing fuels clearly provides a long term commercial opportunity.
Closer To Home
Not only has the government confirmed support for the use of waste to develop fuels, it has also limited the amount of energy crops able to be used for this purpose. Despite some respondents asking for high limits and/or no limits, the government has set a 4% limit on the use of energy crops for producing fuels in 2018, declining linearly from 2021 to 2% by 2032.
The 4% cap is in excess of the current expectations around future levels of demand. The use of land for the production of crops to develop fuels, as opposed to food, is not viewed as a responsible long-term activity.
Moving focus towards the use of waste in biofuel production also comes at a time when both the cost and the impact of Brexit is meaning waste companies are looking for solutions closer to home to help process the huge quantity of refuse-derived fuels currently being exported.
So, with the clear expectation that waste will form a key component of the growth of biofuels, and the technology and processes required becoming more bankable, perhaps the stars are aligning for a really valuable alternative to electricity production from waste treatment to come into play.
