Which fuels are eligible?
Eligible fuels are those designated as "renewable"; these are defined in HMRC legislation, and the same fuels will be eligible for RTF Certificates and will hence make up the renewable fuels delivered under the RTFO. These are the same fuels for which the Government already offers a 20 pence per litre duty incentive.
The main fuels at the outset of the obligation will be:
- Biodiesel, which is defined as "diesel quality liquid fuel produced from biomass or waste cooking oil, the ester content of which is not less than 96.5% by weight and the sulphur content of which does not exceed 0.005% by weight, or is nil".
- Bioethanol, which is defined as petrol quality liquid fuel consisting of ethanol produced from biomass.
Biomass means vegetable and animal substances consisting of the biodegradable fraction of products, wastes and residues from agriculture, forestry and related activities, or industrial and municipal waste.
A very small number of vehicles are currently adapted to use natural road fuel gas, known as biogas, as their fuel. Biogas will also be eligible for RTF certificates, provided that it is dutiable and produced wholly from biomass.
As biofuels develop, the Government will consider adding other fuels to the list of eligible fuels.