UK launches $39M competition for advanced biofuels demonstration plants; targeting min. 60% GHG reduction vs. fossil fuels

23 December 2014

The Department for Transport (DfT) recently launched a £25-million (US$39-million) competition to support the development of a domestic biofuels industry in the UK. The competition will provide capital funding for three demonstration-scale advanced biofuel plants. The projects will be selected through a competitive process, with funding provided over a three-year period, beginning in 2015.

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The fuel produced by the chosen technology must show a minimum of 60% greenhouse gas emissions reductions compared with fossil fuels. Advanced biofuels are made from waste materials such as agricultural residues like straw, using complex processing techniques. They can produce a wide range of transport fuels for roads and aviation.

This £25 million in funding will be made available over 3 years. The competition will be run in 2 stages with a detailed expression of interest stage for potential bidders open until 13 February 2015, followed by full proposals in June 2015. The competition expects plants backed by this funding to be operational by December 2018 and produce at least 1 million liters (264,000 gallons US) of biofuel a year.

The funding which was first announced last year, would be underpinned by significant private sector investment enabling the construction of three demonstration biofuels plants, the first of their kind in the UK.

Ricardo-AEA and E4tech have been selected as the Department for Transport’s delivery partners to run the competition.