Surprise
clarification of the Government's position on the early introduction
of E10
We have spotted this NEWS item where this letter sent out from
Norman Baker at the DfT is interesting, a definite discouragement
to the early introduction of E10 from the Government. It is
not a private letter and has been referred to in Classic Car
Weekly from which the FBHVC obtained a copy.
Posted: 121016
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In
a recent letter to Andy Eastlake, Managing Director
of the Low Carbon Vehicle Partnership, MP Norman
Baker is believed to have commented on the introduction
of E10 in early 2013 as follows:
Thank you for your letter of 24th July regarding
the potential introduction of
ElO in the UK market in 2013. I am writing to you
and others in the
motor and fuel industries to explain the Government’s
position on a
prospective ElO launch.
Any decision to introduce ElO is, of course,
a commercial matter for fuel
suppliers and retailers. However, for the reasons
set out below, the
Government does not believe that now is the right
time to introduce ElO.
I therefore strongly encourage fuel suppliers and
retailers to delay any
plans for the early introduction of this new product.
As you have highlighted, changing the chemical composition
of fuels can
pose challenges for existing vehicles as some materials
in the fuel
system can be incompatible with increased biofuel
content. I understand
that while new vehicles are compatible with ElO
blends, around 20% of
the current car and small van fleet is incompatible
with ElO. I am
concerned that, with only two types of petrol generally
available on
forecourts, if an ElO blend were to be used as the
standard petrol grade,
those with older, incompatible vehicles might be
forced to use the more
expensive ‘super unleaded’ grade. I am
particularly concerned about the
effect this would have on those with lower incomes,
who tend to drive
older cars. Introducing ElO at a later date,
when the proportion of
compatible cars has increased, would significantly
mitigate this
impact on consumers. The lower energy content of
ElO may also
result in a small increase in the overall cost of
driving for many motorists, which would be difficult
at a time when the incomes of families and businesses
are already under pressure.
Another significant risk around an early ElO launch
is that public
concerns around the sustaihability of biofuels become
mixed with
concerns around vehicle incompatibility. I am confident
that these two
concerns, around biofuel sustainability and vehicle
compatibility wHI have
significantly reduced in the medium term. You are
aware of the efforts
we are making at a European level to find a way
of addressing the
emissions and biodiversity impacts resulting from
indirect land use
change (ILUC). However, if fuel suppliers introduce
ElO too early,
this may cause long term damage to the image of
higher-ethanol
blends, jeopardising our ability to meet our renewable
energy
targets.
Higher-ethanol blends are likely to play a key role
in our longer term
strategy for meeting the UK’s renewables targets.
However under the
Renewable Transport Fuel Obligation (RTFO), biofuel
uptake targets are
4.5% of the total fuel supply in 2012/1 3, rising
to 5% in 2013/14.
Therefore, there is no pressing need for any fuel
supplier to supply El 0
to meet RTFO biofuel uptake targets at this time.
I appreciate the work the LowCVP has undertaken
so far to develop a
communication plan to enable the implementation
of ElO in the UK
market once the time is right for this. I can confirm
that Department for
Transport officials will continue to engage with
this activity.
I am copying this letter to other relevant industry
associations. I am keen
to discuss this matter further with you and other
interested parties from
the oil, biofuel and automotive sectors, and would
be grateful if you
could liaise with my office to identify a suitable
date, and with my officials
to agree an appropriate cast list for the meeting.
In addition to meeting with you, I would ask any
fuel suppliers who are
planning to introduce E10 to get in contact with
me directly. I would be
very keen to meet with such companies to discuss
their plans." More |
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