Biofuel industry is shrinking

The government is consulting on how it regulates the biofuels sector against a backdrop of declining output and an exodus of small producers.

Less than a quarter of government registered biodiesel producers are still active because many small producers listed have left the industry. UK biofuel output also fell last year with the sector operating well below capacity.

The depressed state of the UK biofuels industry is revealed in a review of the sector by consultancy Ecofys for the Department for Transport (DfT).1

The review reports that only 14 of the UK’s 65 biodiesel producers registered under the government’s Renewable Transport Fuel Obligation (RTFO) are still active. Those that remain include large and medium producers such as Argent Energy, Convert2Green, Greenergy, Harvest Energy and Olleco.

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