Renewable Transport Fuel Obligation
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[1].
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[1].
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)[1].
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, 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[1].