In the recently published pre-budget report, Chancellor Gordon Brown announced that it was important for the Government to support innovative types of biofuel production, especially where these could result in biofuels with greater life cycle emissions benefits.
The report announced that the definition of biodiesel would be amended to include a new “second generation” biodiesel (from hydrogenation of biomass) that offers potential environmental benefits, and is capable of being blended in excess of 5 per cent blends. The duty incentive of 20ppl will be made available for a limited pilot scheme in 2007 to trial the use of biomass in the commercial refinery process.
The report also announced reduced duty rates for biodiesel mixes with gas oil, proposed for specific pilot projects testing off-road use, for example in railway engines.
Download the Pre-Budget Report (274 pages) here (PDF, 1,4 MB).
Source: hm-treasury Dec. 06, 2006.