Scotland's farming union (NFU Scotland) has warmly welcomed the introduction by the UK government of a target for the use of environmentally-friendly road fuels, which farmers can provide the raw material for. The announcement follows significant lobbying by farming unions and environmental groups.

The Department of Transport today announced that by 2010, five per cent of road fuel must originate from renewable sources. The inclusion will begin from 2008 and is likely to be phased in until the inclusion rate reaches the required level in 2010.

Scotland's farmers are perfectly placed to provide the foundation for UK biodiesel production. Animal fat (tallow) can be processed into biodiesel, likewise energy crops such as oilseed rape.

NFU Scotland has stressed that this announcement must mark the start of significant development of the UK biofuel industry. NFUS has emphasised that this also requires a long-term Treasury commitment to the biofuel duty cut and public investment in new processing facilities.

NFUS Vice President Bob Howat said:

"We have been pushing government for a while now to introduce a meaningful target for biofuel use and we are delighted they have now done so. Whilst a five per cent target sits just below the EU-recommended level, this is still an extremely significant move.

"Farmers have always had huge potential to contribute to the fight against climate change and the processing of energy crops and livestock by-products into environmentally-friendly fuels are amongst the most significant. Our climate and geography are perfectly suited to growing crops such as oilseed rape. All we have needed is government to kick-start the green fuel industry here and this is an important step.

"Of course, setting a target is the easy bit; the focus must now be on delivery. Following on from this announcement, government needs to provide investment aid for processing facilities and maintain a significant duty cut to deliver a boost for Scottish jobs, the economy, farming industry and, most of the all, the environment.

"The UK has lagged behind Europe on biofuel production, so this new target must be considered a target for domestic production. Nobody here wants to see the bizarre situation of having to import biofuel into the country when we are perfectly placed to produce it ourselves. That would negate the environment benefits and ignore a huge renewable energy reserve in the UK that has remained untapped for too long."

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