Press release

£25 million for advanced biofuel demonstration projects

Biofuels industry gets £25 million of capital funding.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Biofuels

Transport Minister Norman Baker has today (1 August 2013) announced £25 million of capital funding to enable the construction of demonstration-scale waste to fuel and other advanced biofuel plants in the UK.

The money will be used to underpin significant private sector investment in one or more demonstration-scale advanced biofuel plants in order to drive the development of the UK’s biofuel industry.

Advanced biofuels are made from materials, for example municipal waste and forestry residues, using complex processing techniques. They can produce a wide range of transport fuels including replacements for those used in road transport and aviation.

Transport Minister Norman Baker said:

I am delighted that we are able to support these innovative technologies and believe that they will bring significant benefits to the UK. There are real opportunities for the UK to take a technological lead, driving growth, creating highly skilled jobs and seeing energy, security and environmental benefits.

It is clear that in the long term advanced biofuels will be important in areas that we cannot otherwise decarbonise, such as aviation. This announcement will help put the UK in a good position to meet this demand.

Energy and Climate Change Secretary Edward Davey said:

Advanced biofuels have the potential to make a sustainable contribution to our 2020 renewable energy targets, as well as to our longer term decarbonisation targets.

There is significant potential for growth in biofuel use, in low carbon vehicles and other sectors, if advanced technologies are harnessed.

This funding will give the industry the boost it needs to develop this innovative, low carbon market.

The funding will be provided over three years from 2015 following a competition to identify the best and most suitable industry proposals.

The Department for Transport will commission a feasibility study to report on the detailed design of the proposed competition including eligibility criteria and funding scheme options, as well as ensuring the project complies with EU State aid rules.

Further details on the competition, including the feasibility study, will be provided in the autumn alongside a range of potential measures to support the most sustainable fuels and spur further innovation in this sector.

Notes to editors:

Statistics for the supply of biofuels to the UK have been published today (1 August 2013).

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Published 1 August 2013