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UK Biofuels Industry Faces Shutdown Due to Government Crop Cap
(FG Insight) Vivergo Fuels, which converts 1.1m tonnes of feed-grade wheat a year into bioethanol, has said it could face closure if the Government ploughs on with plans to restrict crop-based biofuels in petrol.
The UK must ensure 10 per cent of its transport fuel comes from renewable sources by 2020, but the Department for Transport has planned to limit the volume of crops used to produce biofuels at two per cent, or zero per cent – an effective ban.
The EU allows the cap to be set as high as seven per cent.
John Holtby, a farmer from Skirlaugh who supplies Vivergo Fuels with wheat, said: “If Vivergo closed down it would have a significant effect on us.
“The majority of the crop we grow goes there, so we would have to find other markets and that might involve exporting.
“Vivergo soaks up our exportable surplus. I do not know what the Government thinks it is doing trying to change the goalposts.”
The NFU has been lobbying for the crop cap to be set at 7 per cent and said UK self-sufficiency, sustainability and food security would be at risk if Ministers make it lower.
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