The UK Government supports the use of biofuels as one way of reducing carbon emissions from road transport. To support this aim, the Renewable Transport Fuel Obligations Order (2007) places an obligation on suppliers of fossil fuels to supply a quantity of biofuels proportional to the amount of fossil fuel they supply.
The RTFO Order is linked to the act of Parliament that determines the way that duty is charged on fossil fuels - the Hydrocarbon Oil Duty Act (HODA). An issue arose with the text of the 2007 Order because the section of this act dealing with fossil fuels (which was referenced by the RTFO Order) does not include ‘bioblends' - fuels that are part fossil fuel, part biofuel. As the RTFO was originally drafted, these bioblends were not included.
It is common practise in the UK fuel industry to supply diesel fuel with a small percentage of biofuel blended into it - i.e. as a bioblend. This may also occur in some cases with ethanol blended into petrol.
The misdrafting has been corrected by the RTFO Amendment Order 2009.
Further information on the 2008/09 certficate position is available here.
Last Modified: 30 Sep 2009