UK to raise 2022 biofuel target to 11.1%, up 1.5pp, 14.6% by 2032

Quantum Commodity Intelligence – The UK is set to increase its main 2022 biofuels target to 11.1% of all liquid road fuels by volume, up from a prior target of 9.6%, while the 2032 target will be 14.6%, up from 9.6%, the government announced Wednesday.

The announcement followed an industry consultation completed in April and necessary changes to legislation will pass through Parliament later this year in time for implementation starting January 1, 2022.

After the 1.5% jump higher to an 11.1% target next year, goals will then increase by 0.35% each year until 14.6% is reached in 2032.

Previously, the target was set to remain static at 9.6%.

The so-called 'main' biofuel target covers typical renewable fuels such as ethanol and biodiesel and stands alongside a parallel target for development fuels, which will be unchanged and will already rise by 0.2% each year from 0.8% next year to 2.6% in 2031.

The UK government had previously pledged to match or better European Union renewables targets going forward and following the Brexit process.

The long-awaited planned introduction of 10% ethanol blends, known as E10, into the country's retail fuel system later this year also spurred discussions regarding an increase to overall biofuel targets, since current targets were put in place based on the availability of only E5 maximum blends at the pump.

The industry consultation put forward options for a 1.5%, 2.5% and 5% increase to the main target by 2032, with 2.5% the favoured option.

However, after 32 responses out of 77 to the consultation received were in favour of a 5% rise, compared with just 2 and 11 in favour of 1.5% and 2.5% respectively, the government has changed tack and plumped for a higher target.

The consultation response also announced greater support for recycled carbon fuels (RCFs), which are made from fossil wastes that cannot be avoided, reused or recycled, as well as for hydrogen and other renewable fuels of non-biological origin (RFNBOs).

RCFs will be eligible to generate tickets towards the development fuel target, which includes fuels that can be used without blend limits in conventional fossil fuels or in target transport modes such as aviation.

RFNBOs will also have eligibility expanded so that such fuels used in maritime, rail and non-road mobile machinery will also generate development fuel tickets.