Advanced biofuel production processes, including so-called “second generation” biofuels, offer the potential to deliver very high levels of greenhouse gas savings from the transport sector in a highly sustainable way. This is principally because they may allow liquid transport fuels to be produced efficiently from a much wider range of sources than is possible today (including wood, agricultural residues and the organic fraction of municipal waste).
Many of these processes are proven at laboratory scale, and a number of demonstration projects are up and running in various parts of the world. There remains considerable uncertainty, however, as to whether, and if so when, they will become viable at commercial scale.
European Union Heads of Government have made clear that future biofuel targets (including the 10 per cent. by 2020 target agreed at the March 2007 European Council) should be conditional on second generation biofuels becoming commercially available. This is to ensure that these targets can be delivered in a sustainable and cost-effective way.
The UK Government are aiming to incentivise the development of advanced biofuels under the Renewable Transport Fuel Obligation. Further details of how this might be done are set out in a policy paper which is available via the Department's website at:
http://www.dft.gov.uk/pgr/roads/environment/rtfo/secrtfostake/informalpolicypaper.