Written statement to Parliament

Advanced Biofuels Demonstration Competition: grant award

Unwanted waste products to be turned into transport fuel at 3 new plants in England and Scotland.

The Department for Transport launched the £25 million Advanced Biofuels Demonstration Competition to support the development of a domestic advanced biofuel industry in December 2014. Following a strong competition, I am pleased to announce that 3 projects have been selected for investment totalling £25 million over 3 years.

Grants are to be awarded to 3 winning projects:

  • Celtic Renewables Limited £10,925,000
  • Advanced Plasma Power Limited £10,958,194
  • Nova Pangaea Limited £ 3,000,000

The projects will use the capital grants awarded, supported by significant private sector investment, to construct 3 demonstration-scale advanced biofuel plants in Swindon, Tees Valley and Grangemouth.

Relative to first-generation biofuels (those made from traditional crops, starch, sugars or vegetable oil), advanced fuels have the potential to deliver greater carbon savings without the same concerns around food security and land use change. The advanced fuel technologies the winning projects will demonstrate could reduce our reliance on imported energy, by turning unwanted waste products into valuable transport fuel, adding value to the UK economy and creating jobs. According to an independent feasibility study, gains from the domestic supply as a result of converting low value waste to high value transport fuel could be worth up to £130 million gross value added (GVA) to the UK by 2030, and potentially up to £500 million per year including exports.

This is a major step forward for the UK and supports the work the Department for Transport is doing to set the UK’s long term strategy for biofuels in order to meet EU targets, which includes considering a sub target for advanced biofuels.