Following the reform of the sugar regime, farmers can grow sugar beet on set-aside land for bioethanol use and can claim the European Union’s €45 per hectare Energy Aid payment for sugar beet on non set-aside land.
The Government are promoting the production of bioethanol through a 20p per litre duty rate cut. To further develop the supply of biofuels, a Renewable Transport Fuel Obligation will be introduced to require 5 per cent. of fuel sold in the UK to come from a renewable source by 2010.
We are aware that British Sugar are building a biofuel processing plant in Norfolk that will use sugar beet as one of the feedstocks.