Biofuel in the United Kingdom

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Biodiesel in the United Kingdom
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The biofuel sector in the United Kingdom, under the auspices of the government's

feedstocks. In the year 2022, the biofuel sector, as per government reports, achieved a reduction in GHG emissions by 82% in comparison to traditional fossil fuels.[1]

General

CFPP for B100 biodiesel of -15 °C in the winter (16 November - 15 March inclusive) and -5 °C for the rest of the year. As such, the benefits and disadvantages of biodiesel will vary from those in the United Kingdom
.

Environmental benefits

fossil fuels. It assumes biodiesel is transported to the UK to be burnt.[2]

Making and burning biodiesel contributes to atmospheric

Renewable transport fuel obligation.[4]

Taxation

In the UK, drivers using

Her Majesty's Revenue and Customs
. The rate of taxation on SVO was originally set at a reduced rate of 27.1p per litre, but in late 2005, HMRC started to enforce the full diesel excise rate of 47.2p per litre.

HMRC argued that SVOs/PPOs on the market from small producers did not meet the official definition of "biodiesel" in Section 2AA of The Hydrocarbon Oil Duties Act 1979 (HODA), and consequently was merely a "fuel substitute" chargeable at the normal diesel rate. Such a policy seemed to contradict the UK Government's commitments to the Kyoto Protocol and to many EU directives and had many consequences, including an attempt to make the increase retroactive, with one organization being presented with a £16,000 back tax bill. This change in the rate of excise duty effectively removed any commercial incentive to use SVO/PPO, regardless of its desirability on environmental grounds; unless waste vegetable oil can be obtained free of charge, the combined price of SVO/PPO and taxation for its use usually exceeded the price of mineral diesel. HMRC's interpretation is widely challenged by the SVO/PPO industry and the UK pure Plant Oil Association (UKPPOA) was formed to represent the interests of people using vegetable oil as fuel and to lobby parliament.[5]

Following a review in late 2006,

HM Revenue & Customs has announced changes regarding the administration and collection of excise duty of biofuels and other fuel substitutes (Veg Oil). The changes came into effect on 30 June 2007. There is no longer a requirement to register to pay duty on vegetable oil used as road fuel for those who "produce" or use less than 2,500 litres per year.[7] For those producing over this threshold the biodiesel rate now applies. From 1 June 2014 Production or Usage of Any Biofuel (inc SVO, Bio-Diesel etc.), Substitute or Additive is limited to 2500 litres. You must be registered to use or produce greater than 2500 L of Biofuel, Substitutes or Additives. Records must be kept for all production volumes and methodology regardless of quantities produced.[8]

See also

References

  1. ^ "Renewable fuel statistics 2022: final report". GOV.UK. Retrieved 2024-01-13.
  2. ^ Graph derived from information found in UK government document. Carbon and Sustainability Reporting Within the Renewable Transport Fuel Obligation Archived 2016-11-24 at the UK Government Web Archive
  3. ^ "Globiom: The basis for biofuel policy post-2020 | Transport & Environment". 25 April 2016.
  4. ^ Carbon and Sustainability Reporting Within the Renewable Transport Fuel Obligation Archived 2016-11-24 at the UK Government Web Archive
  5. ^ "Fuel-Duty and VAT on Pure Vegetable Oil". Biomotors.co.uk. Archived from the original on 2007-05-07. Retrieved 2007-05-04.
  6. HM Revenue & Customs (December 2006). "Review of the definition of Biodiesel in Hydrocarbon Oil Duties Act 1979: Summary of Responses and Findings" (PDF). Archived from the original
    (PDF) on 2007-09-27. Retrieved 2007-05-04.
  7. HM Revenue & Customs. Archived from the original
    on 2007-07-03. Retrieved 2007-06-24.
  8. HM Revenue & Customs
    . Retrieved 2014-12-30.

External links
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