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1 n the last Budget when Chancellor

9th January 2003, Page 40
9th January 2003
Page 40
Page 41
Page 40, 9th January 2003 — 1 n the last Budget when Chancellor
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Which of the following most accurately describes the problem?

Gordon Brown announced that he was cutting the duty payable on biodiesel, most hauliers' reaction was probably one of incomprehension. Biodiesel, for many, conjured up images of a low

1 n the last Budget when Chancellor

Gordon Brown announced that he was cutting the duty payable on biodiesel, most hauliers' reaction was probably one of incomprehension. Biodiesel, for many, conjured up images of a low grade fuel only suitable for farmyard tractors. But its time to reappraise that viewbiodiesel is about to become big business.

Ironically, if you've bought diesel in France you may well have unwittingly tried it. Total has been putting a small amount of biodiesel into its standard diesel for a long time now, and over here the ASDA supermarket chain is to trial its use in the New Year.

Such is the potential for operators to start using an environmentally friendly fuel that the chances are that in five years' time, the vast majority of operators in the UK will be running their fleets on it. WHAT IS IT?

• Biodiesel is made from vegetable oil— either directly from plants such as oilseed rape, or from recycled oils that have been used by the food industry.

Until now the cost of its collection, processing and distribution have made it uneconomic to all but the most environmentally advanced user who was prepared to pay a premium. Although it has a lower calorific value than standard diesel, it can be used to run a diesel engine that has been suitably modified. But its most suitable application, particularly for hauliers who want to use it with the minimum of hassle, is when it is added to standard ultra-low-sulphur diesel. Bio works best for normal use as a 5% mix-95% normal diesel and 5% biodiesel—and this mix is now being offered to hauliers from a small number of outlets around the UK. TAX CHANGES • You wouldn't be reading this article if Gordon Brown had not modified the fuel duty system last March. After considerable lobbying, most notably from the British Association For Bio Fuels & Oils (BAB FO), he decided that biodiesel would be taxed at a rate of 25.82p/lit-2op less than that for standard ultra-low-sulphur diesel (45.82p/lit).

While the 2 op reduction only applies to the volume of biodiesel in the fuel, it was just about enough of an incentive to cover the extra costs of manufacturing the biodiesel. Instead of costing more than U LSD at the pumps, the tax change effectively meant that biodiesel was now the same price to bulk purchasers.

BAB FO is still lobbying to get the ta) down further, arguing that there should be 2 financial incentive for operators to use

u el that offers significant envionmental and other benefits or all concerned.

HAT ARE THOSE BENEFITS? One of the biggest benefits to he government is that biodiesel educes the amount of greenouse gases produced.

While the proportion of carbon oxide coming out of the exhaust fa vehicle using the 5% mix are lightly higher than standard iesel, the fact that the plants bsorb CO2 as they are growing akes it a very attractive prospect o a government struggling to duce greenhouse gas emissions n this country.

In net terms, biodiesel is said

o produce half the CO2 of ULSD when you take the growing cycle into account.

There are also significant benefits for operators. The vegetable oil in the diesel is said to add much of the lubricity that was lost when diesel had most of the sulphur taken out. Engines running on biodiesel also produce significantly fewer particulates (13% fewer over an urban cycle in recent tests run at Millbrook) and 9% fewer hydrocarbons. However, the accountants among you will be most interested in the impact it has on fuel consumption. There has been a lot of testing of biodiesel, particularly on the Continent, and, according to BABFO chairman Peter Clery, almost every test has shown some fuel economy savings as well as a reduction in emissions.

The most recent tests conducted at Millbrook on behalf of supplier Rix BioDiesel concluded that the fuel consumption for trucks running on biodiesel was almost identical to those running on U LSD for the urban and motorway cycles, but 2.78% better on the extra urban cycle. This could translate to a r% overall improvement in fuel consumption, but that is dependent on the type of running.

EASE OF USE • Perhaps the biggest thing biodiesel has going for it is its ease of use. Engines do not have to be modified to use the 5% mix and manufacturers' warranties are unaffected by its use.

Suppliers of the fuel claim the improved lubricity will reduce engine wear and thus extend service life. In fact, the only real barrier to its use is getting hold of it.

Unless you operate within

striking distance of one of the few pumps that currently sell it, the supply of biodiesel is restricted to bulk purchases. One of the companies leading the biodiesel charge, Hull-based Rix BioDiesel, will supply it anywhere in the country at the same price as ULSD—but you will have to buy enough of it to cover the transport costs.

The only word of warning comes from Peter Clery. He says operators should check that their supplier is providing fuel that conforms to draft European Standard EN14214 "as there was some very dubious biodiesel coming out of Germany at one time".

The UK arm of the Wal-Mart

group has been making a lot o noise about biodiesel for somi time but has yet to trial its use The company is hoping to direct') recycle the r.6 million litres o vegetable oils that its stores pro duce from cooking things lik( doughnuts and add it to its owr diesel supply.

While it remains to be seen ii it can make such a complicatec supply chain pay, the company h committed to running twc trucks on biodiesel in the Nev Year to evaluate its viability for more extensive use.


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