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Tuesday, April 15, 2008
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Teesside Needs Government to Partake in Biofuels Act

TEESSIDE - This is a special report by Jez Davison, Alan Plews and Sue Scott, as taken from NE Business, about the Government's role in the campaign against global warming. According to them, rising US biodiesel imports, dented investor confidence, and a Prime Minister who appears less than committed to protecting our industry, have hammered producers here. If we want a green future for Teesside, it’s time to tackle the issues head on, they write.


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"It’s a chance for local producers to help meet the demands of that market, given that suppliers will be scrutinised on the sustainability of the fuel they are selling."
Energy and environment manager for regional development agency One NorthEast Ray Thompson

The biofuels industry on Teesside is standing on shifting sands.

Tony Blair’s apparently emerald green commitment to environmentally friendly policies in the UK has been muddied by Gordon Brown, whose record in the Treasury was less than exemplary when it came to promoting green industry. All credit that he stood by the Government’s commitment to introduce today’s Renewable Fuel Transport Obligation, but we mustn’t forget he also approved the removal of tax incentives for biofuels producers at a crucially important moment in their young history - axing a long-term incentive just when investors needed a confidence boost.

Europe, meanwhile, appears poleaxed by the thought of taking any action against the US that might be construed as protectionism - even though France and Germany have both taken limited unilateral action to protect their producers.

Surely, the UK - even within its fiercely liberal regime - could find a similar framework. Without some hefty political welly, backed by serious PR, Teesside could be the long-term loser and it needs concerted action now, both in Westminster and Brussels, to prevent its green shoots wilting.

Having been the focus for an emerging and globally important sector, which will have seen £500m invested in the region by the year end, Teesside could see its biofuels industry stifled by political inertia.

Conservative MEP for the North-east, Martin Callanan - who sits on Europe’s Environment, Public Health and Food Safety Committee - is actively lobbying the European Commission to tackle US subsidies head on. He says they are putting the livelihoods of UK farmers and biofuel producers at risk.

He also believes the Government should commission more research into second generation biofuels, which are produced from different parts of the crop and result in a higher output of usable material, thereby countering much of the bad press associated with biofuels. But, again, there is no publicly funded research into British biofuels that could help put Teesside ahead.

“The UK government should invest more in second generation biofuels than in wind farms, which are comparatively inefficient and funded by the British taxpayer,” said Mr Callanan.

If a political solution is found, the North-east biofuels industry could be worth more than £1bn by 2027.

Energy and environment manager for regional development agency One NorthEast Ray Thompson said: “We have the infrastructure, process expertise and strong rural capacity to offer the entire process from seed to tank. The Renewable Transport Fuels Obligation guarantees a minimum market for biofuels.

“It’s a chance for local producers to help meet the demands of that market, given that suppliers will be scrutinised on the sustainability of the fuel they are selling.”

It’s not an offer that Teesside can afford to refuse, but neither can it rise to the challenge with one hand tied behind its back.

View the NE Business story by clicking here.

TheBioenergySite News Desk


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