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Over the last three years, the Government's main support for the production of biofuels has been in the form of the 20 pence per litre duty rate reduction for biodiesel and bioethanol. Since April 2008, support has been focused through the renewable transport fuel obligation. This support has been available to both domestic and imported biofuels and information is not available on the amount spent on each category.
Farmers can receive the single payment for biofuel crops grown on set-aside and non set-aside land. However, as data on the end use of arable crops are not collected, it is not possible to give the amount spent specifically on biofuel crops.
Farmers can also claim the EU's €45/ha energy aid payment where energy crops are grown on non set-aside land with a contract for energy end use. However, this does not differentiate between crops grown for biofuels or the generation of heat and power. The cost of this support for the last three years is as follows:
England Wales Scotland 2005 2,510,221 856 116,492 2006 4,163,214 2,028 265,902 2007 3,822,057 14,968 1236,084 1 There are a few claims still to be processed.
1 There are a few claims still to be processed.
Capital grants have also been provided by the Regional Development Agencies for the construction of processing plants.