The target for sustainability (i.e. meeting a qualifying environmental standard) is 30% over the reporting year. Currently, 20% of biofuels meet these standards. 97% of the fuel reported as coming from UK feedstocks met environmental sustainability standards.

The savings reported exclude any emissions from indirect changes in land-use as considered in the Gallagher Review (July 2008). (Earlier post.) The RFA has recommended that indirect effects are included in future sustainability reporting and is working with the Government and experts to identify a way to accurately reflect this.

US soy was the leading biodiesel feedstock for the period covered in the report. Click to enlarge. Source: RFA

The Government has also set a target that companies should report 50% of the data required by the RFA in four categories—feedstock, country of origin, sustainability standard met and land-use change. In this quarter, 61% of data was reported. The feedstock is known for 95% of biofuels. Both the feedstock and country of origin are known for 72%. The most widely reported biodiesel feedstock was soy from the US (25% of all biodiesel). The most widely used bioethanol feedstock was Brazilian sugarcane (74% of all bioethanol).

The RFA also made preliminary observations on the performance of the UK’s major fuel suppliers:

• Almost all are either achieving or are close to achieving carbon savings in line with the Government’s target for 2008-09. Harvest Energy, Greenergy, Mabanaft and Shell exceed the target.

• Although ConocoPhillips report a negative carbon saving, and Chevron report very low carbon savings, these may be revised during the auditing process.

  Some of ConocoPhillips’ and Chevron’s EU-derived rape biodiesel was reported as coming from agricultural grassland, which carries a significant carbon penalty. Both companies are investigating with their suppliers to clarify whether this previous land-use is correct or whether the land was set-aside. Under the RTFO reporting guidelines, set-aside land counts as cropland, which does not carry a carbon penalty. ConocoPhillips has, since the tabulation of the report, produced evidence that the fuels in question were produced on cropland. This would change its overall carbon savings to 41%.

• Harvest Energy and Mabanaft are exceeding the current sustainability target. However, several companies (BP, Esso, Murco, Prax and Topaz) have so far failed to report any biofuels as meeting the qualifying environmental standard. Of these, Prax and Topaz have also failed to report the origin of their biofuels.

• Esso, Petroplus, Prax and Topaz are currently failing to meet any of the three targets set by Government.

Greenhouse gas savings by feedstock and country of origin for the reporting period. Click to enlarge. Source: RFA

The RTFO applies across the whole of the UK. Refiners, importers and any others who supply more than 450,000 liters (119,000 gallons US) of fossil-based road transport fuel annually to the UK market are obligated by it.

The initial RTFO requirement is for 2.5% of the fuel supplied for road transport in 2008-09 to be biofuel. The RTFO order increases this by 1.25% a year to 5% in 2010/11. The UK Government is expected to announce a consultation on the rate of increase of the volume target for biofuels under the RTFO.

The European Union is expected to finalize legislation which sets mandatory renewable fuel targets for 2020 early in 2009, including Europe-wide sustainability standards. The UK will need to adapt to the new requirements when they come into force in April 2010.

Resources

• RFA Quarterly report, April - July 2008