NFU Scotland has welcomed a report published today (28 October) emphasising the potential for developing Scotland's biodiesel industry. However, NFUS has stressed that whilst the industry is ready and willing to commit to its development, Government support is central to ensuring initiatives get off the ground.

NFUS is urging government to make a long-term commitment to a duty cut and to introduce mandatory targets for biodiesel use, at least at the EU-recommended levels, as soon as possible to stimulate development.

The report published by the Scottish Agricultural College was commissioned by local councils in the North and East of Scotland following discussions in which NFUS was involved. The report highlights the suitability of Scottish conditions to growing crops such as oilseed rape, the oil from which can be processed into biodiesel, an environmentally-friendly and renewable road fuel.

NFUS President John Kinnaird said:

"This welcome report again emphasises that we are perfectly placed to develop the biodiesel industry in this country. The Argent plant in Motherwell has demonstrated the environmental potential of processing vegetable oil and animal fats into fuel. If Government puts its money where its mouth is, energy crops can become a significant renewable fuel resource.

"The 20 pence per litre duty cut for biodiesel is only guaranteed until 2007. I understand government has its set spending rounds, but it must realise that it would take longer than that for a plant to be up and running. Attracting commercial support is made all the more difficult when taxation levels are clouded in uncertainty.

"The other stimulus for its development would be generated by the UK Government introducing meaningful renewable fuel targets. They should be at least at the Brussels-recommended level of 5.75% of all road fuels to come from renewable sources by 2010. Ministers have said they will do so, but to date we remain bottom of the European league table on renewable fuel.

"This report recommends that NFUS is involved in the further development of the project. There is huge potential for the farming industry and environment in kick-starting the energy crop industry in this country. We will play our full part in this development and at the same time lobby government to do the same."

OFT Blow to Dairy Industry Development
EU Commission Proposes Simplification of CAP
New addition to NFUS membership team