However, government policies such as the Renewable Heat Incentive provide a much greater incentive for biomethane producers to inject into the grid for electricity and heating rather than being further upgraded for use as a transportation fuel. Therefore, FTA will submit a full response to the call for evidence which closes on 21 February 2014.
“There are limited options for the freight sector to decarbonize, particularly for vehicles on long trucking operations where electrification is not viable. It is therefore vital that government recognizes the value of biomethane and offers producers incentives to ensure that the freight transport sector will have a sufficient supply,” said Rachael Dillon, FTA’s Climate Change Policy Manager.
“In light of the Chancellor’s decision last week to secure the duty differential rate for gas until 2024, there is now more certainty for fleet operators to invest in NGVs. We now need to ensure that there is a joined up approach across government in order for biomethane supplies to be secured for the sector,” she concluded.