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Greenergy welcomes Chancellor's support of biodiesel and sulphur-free petrol

Greenergy welcomes the Government's confirmation of the fiscal incentive for biodiesel of 20p/litre in Budget 2002, honouring its commitment of November 2001. As the first UK supplier of a commercially available biodiesel blend - Greenergy GlobalDiesel - Greenergy actively demonstrates support for the Government's climate change and air-quality targets, through its development of innovative low-emission fuel products.

Greenergy GlobalDiesel is a blend of the biodiesel rapeseed methyl ester and ultra-low sulphur diesel (ULSD). Andrew Owens, Managing Director of Greenergy said:

"We are pleased that the Government now recognises that renewable fuels are an important step on the road to zero- or low-carbon vehicles or fuel technologies and products. However, there is more that can be done to stimulate this developing market and business opportunity." Greenergy has been researching and testing the benefits of biofuel blends for transport use for the last three years. The results of this research confirm both the economic efficiency and environmental effectiveness of blends of biodiesel and ULSD compared to pure use of biodiesel. The work shows that blends of 5% biodiesel with 95% ULSD produce substantially fewer key emissions than when biodiesel and ULSD are used as standalone products.

"The test results were an important finding. If the UK Government is committed to reducing emissions from road transport, particularly those that contribute to global climate change, blends are an important transitional solution. Further market stimulation by the Chancellor would pave the way for significant market penetration of biodiesel blends," said Owens.

Greenergy has urged both the Treasury and the Department of Environment, Food and Rural Affairs to consider its findings when developing future policy and economic incentives for the biofuels market, and in its strategies for transport.


Sulphur-free petrol

Greenergy welcomes the proposed fuel duty differential for sulphur-free petrol and diesel (less than 10ppm sulphur) from 2003, and confirms that it will switch all of its supply to this cleaner fuel as soon as the duty differential comes into force. This will include Greenergy's Citydiesel and Citypetrol, which both currently contain maximum 50ppm sulphur, and the ULSD component of Greenergy GlobalDiesel.