British Bioethanol Industry

Jim Shannon Excerpts

Wednesday 16th January 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Scunthorpe (Nic Dakin) for securing the debate. He and I have a long friendship in this House: we both came here in 2010; we are both Leicester City football supporters—the last two matches have not been good for us, but we hope for better days, and we are still seventh in the league, which at the end of the day is not too bad—and, I am pleased to say, he raises many issues on which I fully and wholeheartedly support him, as I do on this occasion.

Over the years, many Members have endeavoured to pursue and promote this issue, including the hon. Gentleman. I thank them for those endeavours. We have a new Minister responsible for the subject in the Chamber, which I hope is a chance for a positive response. As other Members have done in their contributions and interventions, perhaps she will plot a way forward that can deliver what we have discussed.

I declare an interest as a member of the Ulster Farmers Union, a sister body of the National Farmers Union. I will make some short comments from the point of view of the farmers union. I am keen to see how we can all benefit from the promotion of the bioethanol industry sector across the whole of the United Kingdom of Great Britain and Northern Ireland, because if we all pursue the policy, we should all get the benefit.

E10 is a type of petrol that contains up to 10% bioethanol. At the moment, E5 is commonplace on UK forecourts, and it contains up to 5% renewable bioethanol. E10 and even higher grades of bioethanol blends are commonplace in other countries around the world, such as E25 in Brazil—Members might have seen correspondence on that in the papers recently.

E10 legislation would increase demand for UK-derived feed wheat through the increased production of bioethanol. That would decrease the surplus in exportable feed wheat and, in turn, increase the amount of the co-product DDGS, or distillers’ dried grains with solubles, received by the livestock sector as high-protein, high-quality feed. At full capacity, the bioethanol industry in the UK would utilise about 2 million tonnes of feed wheat, with about 50% of that intake returned as DDGS. That provides the opportunity to create 1 million tonnes of UK-derived, high-protein animal feed while offering more protection to arable and livestock farmers from the perils of global commodity markets.

When we look at the intricate detail of the proposition, there is a real possibility of deriving benefit in many sectors, and in many ways, from the development of bioethanol. It seems to me that it needs serious consideration. We therefore look to the Minister for a wholesome and full response.

I was heartened by the work of my local council and its recycling endeavours. As an easy-to-grasp illustration of what it had done, for example, it equated its work on increasing recycling and lessening waste to the number of cars taken off the road—it put it in simple language. The UK-wide introduction of E10 would be the equivalent of removing 700,000 cars from the roads, or 3 million tonnes of CO₂. The information provided to me states that the roll-out of E10 would be the fastest and most effective way for the UK to reach its climate change targets, especially as E10 can be used in hybrid electric cars.

Successive Governments have encouraged people to purchase diesel vehicles, and now they tell them not to, so perhaps we have here a method of addressing that. I emphasise to the Minister and other hon. Members taking part in the debate that we need to spread the job opportunities that could come off the back of this industry across the whole of the United Kingdom. We need to encourage the farming sector, too, which has a key role to play. Will the Minister tell us what incentives, strategies or plans are in place to encourage farmers to look more at the bioethanol industry?

Ethanol reduces greenhouse gases emissions by up to 90% compared with conventional fossil fuels. Indeed, the Intergovernmental Panel on Climate Change called for a threefold increase in the use of biofuels in transport by 2030. That briefing went on to note that, at the COP24 summit, renewable ethanol was reported to be the largest contributor to progress in the transport sector, but I believe more can be done.

To conclude, I agree with the hon. Member for Scunthorpe. More needs to be done to understand how best to better use resources to live up to the environmental pledge that we have made, and how to make better use of those resources to benefit us all. It is all about benefiting us all, as well as climate change and addressing those issues. We should be pushing forward with great urgency. I thank the hon. Gentleman again for bringing this issue to the Floor of the House. The debate is much needed and much appreciated, and I look to the Minister to ascertain whether the matter will be acted on in the way that those in the debate wish it to be.

--- Later in debate ---

[Ms Ghani]

That meeting is in place with the Teesside massive, as I am referencing them now. I completely understand the frustration about not having a date, but we need to make sure that we get this absolutely right. A meeting is a place and that can be raised directly with the Minister.

It is not agreed that there is conclusive evidence to show that switching from E5 to E10 will have a significant impact on air quality but I would like to assure Members that, as with all policy on low-carbon fuels, we will continue to assess our policies and support against the ambitious targets we have set to improve air quality and reduce carbon emissions.

If we were to mandate E10, it could give suppliers an opportunity to meet those carbon budget targets in a more cost-effective way. That is why the Department has consistently made clear its desire to work with industry in considering an E10 roll-out. The Government are mindful that rolling out E10 is a huge change to the UK petrol market. If such a roll-out were not managed well, it could impact on motorists across the UK. It is important that we prioritise consumer acceptance and ensure the vehicle fleet, consumers and retailers are ready. As was raised throughout the debate, that is a big responsibility for Government to undertake. We need to make sure that everybody is ready and any decision we make is not rushed.

I would like to thank everyone who contributed to the debate for taking the time to further inform our thinking on E10. I must not forget the intervention made by the hon. Member for Strangford (Jim Shannon).

[Jim Shannon]

It was a speech, actually.

[Ms Ghani]

Forgive me. I know that the hon. Gentleman has spoken very positively about the bioponics of E10. The bioponics will be accounted for in our response to the consultation when it is published.

I thank everyone for contributing to the debate. The use of biofuels is and will remain a challenging policy area. However, this must never stop us from finding the right balance between maximising the contribution that low-carbon fuels can make to reducing greenhouse gas emissions and taking into account the interests of consumers.