Renewable Transport Fuel Obligation: Difference between revisions

Latest revision as of 10:33, 30 May 2023

The Renewable Transport Fuel Obligation (RTFO) is one of the Government's main policies for reducing greenhouse gas emissions from transport in the UK, supporting the Government's Transport Decarbonisation Plan^[1] and wider Net Zero Strategy^[2].

Context

The Renewable Transport Fuel Obligation (RTFO) is one of the Government's main policies for reducing greenhouse gas emissions from transport in the UK. In the 2020 obligation year it included:

road transport
non-road mobile machinery (including inland waterway vessels which do not normally operate at sea), tractors, and recreational craft that do not normally operate at sea
renewable fuels in aircraft

It is relevant to not only replacement liquid fuels but can also be related projects where Biogas is used in vehicles^[3].

Put into action in 2008, the RTFO subsidy is intended to deliver reductions in greenhouse gas emissions from fuel used for transport purposes by encouraging the supply of renewable fuels^[3].

Under the RTFO, fuel suppliers have an obligation to provide a volume of sustainable renewable fuel which is calculated as a proportion of the overall volume of fuel they supply for road transport and non-road mobile machinery (NRMM) purposes. The obligation is relevant to fuel suppliers providing at least 450,000 litres of fuel per year (the obligation period)^[3].

Renewable Transport Fuel Certificates (RTFCs) are gained by supplying sustainable renewable fuels and can be redeemed by suppliers to meet their obligations. One certificate may be claimed for every litre of sustainable renewable fuel supplied, or if fuel from certain wastes or residues, fuel from dedicated energy crops, or other renewable fuels of non-biological origin (RFNBO) are supplied then the supplier will receive double the RTFCs per litre or kilogram supplied as certain fuels are further incentivised. Alternatively, suppliers can ‘buy out’ of their obligation by paying a fixed sum for each litre of renewable fuel they do not provide^[3].

In March 2023 a consultation commenced^[4] (closing in June 2023) on proposals for the UK Sustainable Aviation Fuel (SAF) mandate (proposed to commence in 2025) which it is proposed will remove it from the RTFO framework and require that SAF is made from biofuels derived from wastes or residues, recycled carbon fuels (RCFs) or power to liquid (PtL) using low carbon electricity.

Types of Fuel and Feedstocks

In the RTFO Annual Report for 2020^[5] it identifies that there were 42 different feedstocks, 25 of which were wastes, sourced from 91 different countries. The most common feedstocks for UK renewable fuels were as follows:

Fuel Type	Feedstock	Volume (million litres equiv.	% Split
Biodiesel	Used Cooking Oil	1,280.7	50.5%
Biodiesel	Tallow - category 1	88.3	3.5%
Biodiesel	Soy	69.5	2.7%
Biodiesel	Oilseed Rape	60.2	2.4%
Biodiesel	Soapstock acid oil contaminated with sulphur	52.0	2.1%
Biodiesel	Other biodiesel feedstocks	140.5	5.5%
Bioethanol	Corn	176.9	7%
Bioethanol	Wheat	101.0	4%
Bioethanol	Starch Slurry(waste)	92.6	3.7%
Bioethanol	Sugar Cane	74.1	2.9%
Bioethanol	Sugar Beet	57.6	2.3%
Bioethanol	Other bioethanol feedstocks	60.8	2.4%
Other Fuels	Other feedstocks	282.7	11.1%
Total		2,535.8	100%

The top 5 waste feedstocks in 2020 were used cooking oil, food waste, starch slurry(waste), category 1 tallow and waste pressings from the production of vegetable oils.

References

[1] ttps://www.gov.uk/government/publications/transport-decarbonisation-plan

[2] ttps://www.gov.uk/government/publications/net-zero-strategy

[foo-3] 3.0 ^3.1 ^3.2 ^3.3 Department for Transport, 2019. RTFO Guidance Part One Process Guidance 2019: 01/01/19 to 31/12/19. London.

[4] ttps://www.gov.uk/government/consultations/pathway-to-net-zero-aviation-developing-the-uk-sustainable-aviation-fuel-mandate

[5] ttps://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1063074/renewable-transport-fuel-obligation-annual-report-2020-web-version.pdf

[1]

[2]

[3]

[4]

[5]

@@ Line 1: / Line 1: @@
 [[Category:Legislation & Policy]] [[Category:Economics]]
-The RTFO is one of the Government's main policies for reducing greenhouse gas emissions from fuel supplied for use in: (i) road vehicles, and (ii) non-road mobile machinery (including inland waterway vessels which do not normally operate at sea), tractors, and recreational craft that do not normally operate at sea (NRMM). It is relevant to waste related projects where [[Syngas]] and [[Biogas]] are being considered for use in vehicles<ref name="foo"> [[Department for Transport]], 2019. RTFO Guidance Part One Process Guidance 2019: 01/01/19 to 31/12/19. London. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/803811/rtfo-guidance-part-1-process-guidance-year-2019.pdf</ref>.
+The [[Renewable Transport Fuel Obligation]] ([[RTFO]]) is one of the Government's main policies for reducing greenhouse gas emissions from transport in the UK, supporting the Government's ''Transport Decarbonisation Plan''<ref>https://www.gov.uk/government/publications/transport-decarbonisation-plan</ref> and wider ''Net Zero Strateg''y<ref>https://www.gov.uk/government/publications/net-zero-strategy</ref>.
-Put into action in 2008, the RTFO is intended to deliver reductions in greenhouse gas emissions from fuel used for transport purposes by encouraging the supply of renewable fuels<ref name="foo" />.
+==Context==
+The [[Renewable Transport Fuel Obligation]] ([[RTFO]]) is one of the Government's main policies for reducing greenhouse gas emissions from transport in the UK. In the 2020 obligation year it included:
+*road transport
+*non-road mobile machinery (including inland waterway vessels which do not normally operate at sea), tractors, and recreational craft that do not normally operate at sea
+*renewable fuels in aircraft
-Under the RTFO Order, fuel suppliers have an obligation to provide a volume of sustainable renewable fuel which is calculated as a proportion of the overall volume of fuel they supply for road transport and NRMM purposes. The obligation is relevant to fuel suppliers providing at least 450,000 litres of fuel per year (the obligation period)<ref name="foo" />.
+It is relevant to not only replacement liquid fuels but can also be related projects where [[Biogas]] is used in vehicles<ref name="foo"> [[Department for Transport]], 2019. [https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/803811/rtfo-guidance-part-1-process-guidance-year-2019.pdf RTFO Guidance Part One Process Guidance 2019: 01/01/19 to 31/12/19.] London. </ref>.
-[[Renewable Transport Fuel Certificates]] ([[RTFC]]s) are gained by supplying sustainable renewable fuels and can be redeemed by suppliers to meet their obligations.
+Put into action in 2008, the RTFO [[subsidy]] is intended to deliver reductions in greenhouse gas emissions from fuel used for transport purposes by encouraging the supply of renewable fuels<ref name="foo" />.
-One certificate may be claimed for every litre of sustainable renewable fuel supplied, or if fuel from certain wastes or residues, fuel from dedicated energy crops, and RFNBOs are supplied then the supplier will receive double the RTFCs per litre or kilogram supplied as certain fuels are further incentivised. Alternatively, suppliers can ‘buy out’ of their obligation by paying a fixed sum for each litre of renewable fuel they do not provide<ref name="foo" />.
+Under the RTFO, fuel suppliers have an obligation to provide a volume of sustainable renewable fuel which is calculated as a proportion of the overall volume of fuel they supply for road transport and non-road mobile machinery (NRMM) purposes. The obligation is relevant to fuel suppliers providing at least 450,000 litres of fuel per year (the obligation period)<ref name="foo" />.
+Renewable Transport Fuel Certificates (RTFCs) are gained by supplying sustainable renewable fuels and can be redeemed by suppliers to meet their obligations.
+One certificate may be claimed for every litre of sustainable renewable fuel supplied, or if fuel from certain wastes or residues, fuel from dedicated energy crops, or other renewable fuels of non-biological origin (RFNBO)  are supplied then the supplier will receive double the RTFCs per litre or kilogram supplied as certain fuels are further incentivised. Alternatively, suppliers can ‘buy out’ of their obligation by paying a fixed sum for each litre of renewable fuel they do not provide<ref name="foo" />.
+In March 2023 a consultation commenced<ref>https://www.gov.uk/government/consultations/pathway-to-net-zero-aviation-developing-the-uk-sustainable-aviation-fuel-mandate</ref> (closing in June 2023) on proposals for the UK [[Sustainable Aviation Fuel]] ([[SAF]]) mandate (proposed to commence in 2025) which it is proposed will remove it from the [[RTFO]] framework and require that [[SAF]] is made from biofuels derived from wastes or residues, recycled carbon fuels (RCFs) or power to liquid (PtL) using low carbon electricity.
+==Types of Fuel and Feedstocks==
+In the RTFO Annual Report for 2020<ref>https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1063074/renewable-transport-fuel-obligation-annual-report-2020-web-version.pdf</ref> it identifies that there were 42 different feedstocks, 25 of which were wastes, sourced from 91 different countries. The most common feedstocks for UK renewable fuels were as follows:
+{| class="wikitable"
+|-
+! Fuel Type !! Feedstock !! Volume (million litres equiv.!!% Split
+|-
+|Biodiesel || Used Cooking Oil || 1,280.7||50.5%
+|-
+|Biodiesel || Tallow - category 1 || 88.3||3.5%
+|-
+|Biodiesel || Soy || 69.5||2.7%
+|-
+|Biodiesel || Oilseed Rape || 60.2||2.4%
+|-
+|Biodiesel||Soapstock acid oil contaminated with sulphur||52.0||2.1%
+|-
+|Biodiesel||Other biodiesel feedstocks||140.5||5.5%
+|-
+|Bioethanol || Corn || 176.9||7%
+|-
+|Bioethanol || Wheat|| 101.0||4%
+|-
+|Bioethanol ||Starch Slurry(waste)||92.6||3.7%
+|-
+|Bioethanol ||Sugar Cane||74.1||2.9%
+|-
+|Bioethanol ||Sugar Beet||57.6||2.3%
+|-
+|Bioethanol ||Other bioethanol feedstocks||60.8||2.4%
+|-
+| Other Fuels||Other feedstocks ||282.7 || 11.1%
+|-
+|'''Total'''|| ||'''2,535.8''' ||'''100%'''
+|}
+The top 5 waste feedstocks in 2020 were used cooking oil, food waste, starch slurry(waste), category 1 tallow and waste pressings from the production of vegetable oils.
 ==References==
 <references />