The UK government has accepted that with road traffic likely to continue to grow for the foreseeable future, we need to find ways of reducing its environmental impact. The UK Government outlined its policy for the development of a low-carbon transport system in the DfT’s (Department for Transport) Powering Future Vehicles Strategy and aims to further reduce polluting emissions from road traffic, especially in major cities where air quality remains a problem.
This paper mentioned the Green Fuels Challenge which currently is providing zero – duty financial support for demonstration pilots covering a range of alternative fuel infrastructures, to generate information on their environmental, health and safety performance, and build knowledge in the UK (it must be stated however that the emphasis has been placed upon the development of hydrogen and methanol technologies rather than biofuels).
The Government also set itself some rather ambitious targets:

• By 2012, 10% of all new cars will emit 100g/km CO2 or less at the tailpipe.
• By 2020, 10% of all new cars will be ultra - low carbon vehicles (the Government has not yet quantified what ultra – low actually is).

In order to attain these goals the Government initiated the LCVP (Low Carbon Vehicles Partnership), which will bring together all the major players in the automotive, energy and other relevant sectors (i.e. environment etc.). The partnership will “ encourage industries and other stakeholders to engage proactively in the move to low carbon vehicles and fuels, building on informed and shared prospective technology developments”. Much is promised from this committee, however since it was formed at the turn of the year one cannot comment on any of its proposals for the UK transport industry as, at the time of writing (01/04/03) it hasn’t made any.
The Government has also performed extensive analysis upon how to support the move to a low carbon system by ensuring consumer take-up of low – carbon vehicles and fuels, through appropriate financial measures. The Government has already taken important steps to support moves to a low carbon transport system, specifically through:

• Introduction of a graduated system of VED (Vehicle Excise Duty) for cars based on CO2 emission levels.
• The Green Fuel Challenge pilot projects (noted above); and
• The cut of fuel duties on biodiesel and bioethanol (20p below fossil duties).

The Government also allows local bus operators to claim a 100% fuel duty rebate on biodiesel, along with LPG and CNG.
However despite these positive changes, in terms of biofuels, it must be said that the UK Government is not pro – biofuel at all. Britain currently has no biodiesel or bioethanol production program, not even a pilot plant, nor has such a strategy been discussed for the future. In response to the EU directive on targets for biofuel use in transport, discussed in a previous section, the DfT claimed that the estimated CO2 savings from biodiesel where over optimistic.
The DfT notes that there seem to be three possible measures for increasing the use of biofuels :

1. Duty cuts in favour of biofuels for use either in pure form or as a “blend” with conventional transport fuels.
2. Specifying through legislation a minimum biofuel blend in conventional transport fuels; and
3. Formalised voluntary measures with fuel produces and suppliers to meet the targets, either through selling biofuels in pure form, or as a blend.

Naturally the cost of any possible biofuel development would depend upon which option was selected. The paper estimates that costs could be in the range of £475 - £850 million, yet it does not back up these estimations. The UK seems to be floundering as a result of the EU’s directive, with no prescription of what measures should be taken to meet the proposed targets. Despite the DfT recognising the potential benefits of biofuels in the UK Government has not implemented any pilot processing plants (a small plant in the range of 10,000 tonnes per annum). As a consequence the feasibility for biofuels in our country has not been fully explored hence our analysis of the potential for Britain in terms of biofuels.