05/01/2023
The Department for Transport has recently released a report outlining statistics for the supply of renewable fuel to the UK in 2021. According to the report, 5.4% of fuel supplied to the UK mobile machinery market in 2021 was from renewable sources, down from 5.9% in 2020. These amounts fall short of the target set in the Renewable Energy Directive for the UK to have 10% of all fuel supplied as renewable by 2020. However, average greenhouse gas (GHG) savings in 2021 (83% when compared to fossil fuels) showed a steady increase from previous years, indicating an improvement in the sustainability of the renewable fuel supplied to the UK transport market.
Renewable Transport Fuel Obligation
The Report is based on data from the Renewable Transport Fuel Obligation (RTFO), a scheme that aims to reduce GHG emissions from transport fuels by setting annual obligations on fuel suppliers to supply sustainable renewable fuels. The Obligation requires a certain proportion of fuel supplied to the UK to be renewable for suppliers who provide over 450,000 litres of fuel to the UK.
Such suppliers meet their obligation by redeeming Renewable Transport Fuel Certificates (RTFCs), which are claimed for every litre of sustainable renewable fuel supplied. If a supplier falls short of their obligation, they may pay a fixed sum for each litre of fuel which does not meet the sustainability standard to ‘buy-out’ their obligation. Alternatively, suppliers may purchase RTFCs from other suppliers of fuel who have surpassed their own obligation.
A target for supply of ‘development fuels’ was introduced in January 2019 to take into account fuel type, production pathway, and feedstock. Renewable fuel produced from waste, residue, or algal feedstocks typically delivers greater GHG savings than fuel derived from feedstocks grown specifically for producing renewable fuel. As such, waste-derived fuels are worth double RTFCs than fuel derived from non-waste sources such as food crop. In this way, supply of renewable fuel derived from waste feedstock is promoted. Similarly, there is a ‘crop cap’ on food or feed crop-derived biofuels to further promote use of waste feedstock. Such crop-derived biofuels are allowed to meet a supplier’s obligation up to a maximum of 3% before 2026, reducing to 2% by 2032.
What is a renewable fuel?
Renewable fuels derive from renewable feedstocks, which are materials that can be replenished to replace the portion depleted by usage. Such feedstock are either conventional (first generation) biofuels, produced from food or feed crops, or advanced (second/third generation) biofuels, produced from feedstock that do not compete directly with food and feed crops. Definitions of conventional and advanced biofuels, and their associated benefits and drawbacks, were described in a report in 2021 by Andrew Carridge, a Partner in the Cleantech group at R&G. Conventional feedstocks are not considered wholly sustainable because land required to grow such crops is often obtained through deforestation, which threatens biodiversity and contributes to net carbon release. The land and crops could also be used to provide food to feed the population, rather than to produce biofuel for transport. GHG savings from use of renewable fuel is reduced to take any land conversion into account. Advanced biofuels, such as those derived from waste materials, do not utilise crops that are grown specifically for biofuel production, avoiding the problems associated with such sources.
Biofuel from waste materials
Waste-derived fuels have been increasing over time. In 2021, fuel from waste feedstocks accounted for 76% of renewable fuel supplied to the UK in 2021. This is an impressive increase from 12% in 2009. Waste materials suitable for biofuel production mainly include used cooking oil, food waste, and starch slurry. As illustrated below, used cooking oil accounted for 55% of all renewable fuel supplied to the UK in 2021.
There are several processes which can be used to produce biodiesel from waste cooking oil, comprising pyrolysis, micro-emulsification, and transesterification, the latter being the most common method used. The oil and a short chain alcohol are reacted in the presence of one or more catalysts to produce fatty acid methyl/ethyl esters (biodiesel). Recent advances in the field of biodiesel production from oils and fats involve the use of an enzyme catalyst instead of a chemical catalyst. Use of biological catalysts allows for mild reaction conditions, non-toxic emissions, and high yield and purity of biodiesel, at a lower cost. Following on from Andrew’s article, in March 2022 Neste delivered 3.5 million litres of renewable “drop-in” fuel to Gennevilliers, France, from Le Havre. Their maiden delivery enabled the fuel to be widely available to surrounding areas, including Paris. The fuel was transported by pipeline, some 142 km long, which was built by Neste and TRAPIL in collaboration. The UK market for drop-in fuel is small, but growing. Currently, the drop-in fuel is not available at service stations, but it is available for nation-wide delivery and is used in HGVs and non-road machinery. The fuel, also known as HVO100, is produced from 100% waste materials such as used cooking oil, and animal oils and fats. HVO100 is fully compatible with all diesel engines without vehicle or infrastructure modifications.
In 2021, food waste as a source of material for production of renewable fuel accounted for <5% of total renewable fuel supplied to the UK. However, there is a growing interest in the production of biofuels from municipal waste amid current world-wide energy crises and drive for energy independence. As such, we can expect to observe an increase in this percentage in the following years. Additionally, and as reported in my recent article , the UK Government has made separate food waste collection mandatory for households in England by 2023. There will be a 50% increase in the amount of household waste food collected, having the potential to provide huge amounts of fuel for natural gas and dual-fuel vehicles.
Despite a stellar proportion of renewable fuel in the UK deriving from waste feedstocks, there is still much more growing room for renewables as a proportion of total fuel supplied to the UK. Further innovation is required to scale-up biofuel production and accessibility across the UK. Protecting intellectual property (IP)_for innovation in biofuels will help to secure investment and further develop and optimise technological advancements to ensure they remain part of the solution.
The role of IP
IP rights enables businesses in this space to turn their innovative solutions into commercial assets. IP rights provide companies with the opportunity to either prevent others from using their invention without permission or to negotiate profitable business deals.
IP laws not only impose penalties for the unauthorised use of protected IP assets but enables companies to further profit from their innovations. This is done, for example, by licencing IP rights in exchange for payment or royalty fees.
Patent professionals who are well qualified in technology areas such biotechnology and biochemistry can be of great help to their clients in navigating this complex landscape and making sensible business decisions.
This article is for general information only. Its content is not a statement of the law on any subject and does not constitute advice. Please contact Reddie & Grose LLP for advice before taking any action in reliance on it.
