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Volume 472: debated on Tuesday 26 February 2008

To ask the Secretary of State for Transport what recent assessment she has made of the potential role of biomethane as a transport fuel. (186492)

During 2006, the Department part-funded a research project to assess the potential role of biomethane as a renewable transport fuel, as well as commissioning a more detailed analysis of the potential benefits of including biogas in the Renewable Transport Fuels Obligation (RTFO). Copies of these reports have been made available in the House Libraries. The Government are also contributing funds to an International Energy Agency working group (IEA Task 37) which is considering the issues raised by biogas.

In recognition of the environmental benefits that it offers, biomethane already qualifies for a fuel duty incentive equivalent to around 40 pence per kilogramme. From April 2008, it will also be eligible for Renewable Transport Fuel Certificates under the Renewable Transport Fuel Obligation.