Green captive fleet operators such as McDonalds and 3663 First for Foodservice, who currently use high-blends of biodiesel in their vehicle fleets, could see fuel bills rise by as much as 20%. Any ensuing reduction in demand would have a massive impact on UK-based sustainable biodiesel producers supplying these high-blend users.
The British government plans to remove the tax differential from April 2010, relying instead on the Renewable Transport Fuel Obligation as a supporting mechanism for the biodiesel industry. However, early misdrafting of the RFTO and continuing consultation around its form given the European Renewable Energy Directive mean that it is not yet a sufficiently robust mechanism to support the emerging sustainable biodiesel sector.
