Asked by: Bill Esterson (Labour - Sefton Central)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether he has made a comparative assessment with Cabinet colleagues of the potential impact of the cost of (a) low carbon fuels and (b) diesel and kerosene on the level of usage of those fuels by logistics businesses.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Department’s forthcoming Low Carbon Fuel Strategy will cover all transport modes used by the logistics sector.
The Government supports the production of low carbon fuels through the Renewable Trade Fuel Obligation (RTFO), which reduces the cost of low carbon fuels in the long term. The Government published a cost benefit analysis for the RTFO in 2021,but has not undertaken a formal assessment of the impact of cost of different fuel types or the level of usage including for logistics businesses.
Asked by: Fleur Anderson (Labour - Putney)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what progress his Department has made on the research and development of (a) hydrogen fuel and (b) other alternative fuels to petrol and diesel.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Research and development funding for hydrogen focusses on demonstrating proven applications at scale and driving innovation. The Department for Transport supports the Tees Valley Hydrogen Transport Hub, which is co-locating hydrogen supply and demand across proven road, maritime and aviation applications. The Department’s £200m zero emission HGV demonstrator programme will deploy hundreds of vehicles onto UK roads.
In addition, the UK Shipping Office for Reducing Emissions (UK SHORE), Advanced Fuels Fund (including Sustainable Aviation Fuels), Zero Emission Flight Infrastructure project and First of a Kind funding in rail continue to support the development of innovative transport solutions here in the UK.
The Renewable Transport Fuel Obligation now includes a higher value “development fuel” target and synthetic “drop-in” alternatives to fossil petrol and diesel fuels, such as e-fuels “are eligible for this support when supplied in the UK.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what assessment they have made of the public health impacts of recycled carbon fuels through air pollution as compared to existing fuels and other alternative fuels such as those made from biomass.
Answered by Baroness Vere of Norbiton
My Department has regular meetings with representatives from across the transport fuel sector where the government’s policy approach for recycled carbon fuel (RCF) is discussed. The policy on supporting and assessing RCFs has also been the subject of two public consultations, the first in spring 2021 followed by a second on detailed proposals last summer.
As set out in the July 2021 Government response to the consultation “Targeting Net Zero, next steps for the Renewable Transport Fuels”, RCFs supplied in transport will need to meet existing petrol and diesel fuel standards. This will ensure the air quality emissions standards of RCFs will not fall below those of the fossil fuels they replace. The Department understands that the direct use of RCF derived pyrolysis oils can increase air pollutants, but these fuels will not be supported under the proposals to support RCFs.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what meetings they have had with industry bodies about recycled carbon fuels.
Answered by Baroness Vere of Norbiton
My Department has regular meetings with representatives from across the transport fuel sector where the government’s policy approach for recycled carbon fuel (RCF) is discussed. The policy on supporting and assessing RCFs has also been the subject of two public consultations, the first in spring 2021 followed by a second on detailed proposals last summer.
As set out in the July 2021 Government response to the consultation “Targeting Net Zero, next steps for the Renewable Transport Fuels”, RCFs supplied in transport will need to meet existing petrol and diesel fuel standards. This will ensure the air quality emissions standards of RCFs will not fall below those of the fossil fuels they replace. The Department understands that the direct use of RCF derived pyrolysis oils can increase air pollutants, but these fuels will not be supported under the proposals to support RCFs.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, when he last met with a representative of Unipart Logistics to discuss (a) the NHS' plans to reduce its Carbon Footprint and (b) the use of drop-in Hydrotreated Vegetable Oil to replace diesel across (i) fleets and (ii) stand-by generators across the NHS estate.
Answered by Will Quince
Unipart Logistics is a major National Health Service collaborator and meets regularly with Supply Chain Co-ordination Limited to ensure continuous improvement and to deliver supply chain excellence to NHS trusts. The Department’s Ministers have not met Unipart Logistics to specifically discuss the NHS Carbon Footprint or the use of Hydrotreated Vegetable Oil (HVO) in the NHS.
The NHS is committed to reducing its reliance on fossil fuels across its estate and fleet and aims to achieve Net Zero for direct emissions by 2040. As part of this, the NHS is working to increase its use of renewable energy sources. This includes exploring the use of biofuels for fleet and standby generators wherever this is appropriate and cost-effective.
I can confirm that the NHS Supply Chain is currently trialling HVO in its vehicles and will be assessing the long-term viability of HVO as a fuel source for its network.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, if he will take steps to encourage Unipart Logistics to procure drop-in Hydrotreated Vegetable Oil for (a) the NHS estate and (b) its vehicle fleets to replace diesel.
Answered by Will Quince
Unipart Logistics is a major National Health Service collaborator and meets regularly with Supply Chain Co-ordination Limited to ensure continuous improvement and to deliver supply chain excellence to NHS trusts. The Department’s Ministers have not met Unipart Logistics to specifically discuss the NHS Carbon Footprint or the use of Hydrotreated Vegetable Oil (HVO) in the NHS.
The NHS is committed to reducing its reliance on fossil fuels across its estate and fleet and aims to achieve Net Zero for direct emissions by 2040. As part of this, the NHS is working to increase its use of renewable energy sources. This includes exploring the use of biofuels for fleet and standby generators wherever this is appropriate and cost-effective.
I can confirm that the NHS Supply Chain is currently trialling HVO in its vehicles and will be assessing the long-term viability of HVO as a fuel source for its network.
Asked by: Jessica Morden (Labour - Newport East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his policy is on introducing tax relief for hydrogenated vegetable oil for industries that lost access to red diesel in April 2022.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Hydrotreated vegetable oil (HVO) is eligible for Renewable Transport Fuel Certificates under the Renewable Transport Fuel Obligation (RTFO), and is eligible to receive twice the reward in certificates under this scheme where it is produced from waste.
The Government uses the RTFO to incentivise the use of low carbon fuels and reduce emissions from fuel supplied for use in transport and non-road mobile machinery. The RTFO has been highly successful in supporting a market for renewable fuel since its introduction in 2008. Renewable fuels supplied under the RTFO currently contribute a third of the savings required for the UK’s transport carbon budget.
As with all taxes, the Government will keep the tax treatment of HVO under review.
Asked by: Jessica Morden (Labour - Newport East)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment his Department has made of the annual average greenhouse gas emissions from (a) hydrogenated vegetable oil and (b) diesel.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Hydrotreated vegetable oil (HVO), like other renewable fuels, is eligible for support under the Renewable Transport Fuel Obligation (RTFO). The RTFO is a certificate trading scheme that requires large suppliers of transport fuel to ensure a percentage of the total fuel they supply is from renewable sources. The RTFO further incentivises HVO produced from waste feedstocks, such as tallow or used cooking oil, by awarding double the renewable transport fuel certificates (RTFCs) compared to crop derived fuels.
Like all low carbon fuels supported under the RTFO, the Department regularly reports on the carbon savings achieved from HVO. In 2021, HVO provided an average 89% carbon reduction compared to a fossil fuel comparator. Full statistical reports are published quarterly on the gov.uk website: https://www.gov.uk/government/collections/renewable-fuel-statistics.
Asked by: Alex Sobel (Labour (Co-op) - Leeds Central and Headingley)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether her Department plans to take steps to amend the Renewable Transport Fuel Obligation to help increase the competitiveness of hydrogen fuels against diesel for heavy goods vehicles and buses.
Answered by Lucy Frazer
Renewable Hydrogen has been eligible for reward under the Renewable Transport Fuel Obligation (RTFO) since 2019. In July we published guidance which broadened that support by enabling hydrogen producers to claim certificates by using power purchase agreements (PPA) to show the use of qualifying electricity. This will help bring down the cost of hydrogen for all transport users including heavy good vehicles and buses.
In Spring 2023 we will publish a post implementation review of the RTFO 2018 amendments, which was when hydrogen support was introduced. This will investigate the effect of these amendments, informing the UK’s Low Carbon Fuels Strategy, which is in development
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a rebate on HVO fuels for the affordability of that fuel compared to diesel.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
Hydrotreated vegetable oil (HVO) continues to be taxed at the same rate as diesel. As with all taxes, the Government keeps the tax treatment of HVO under review.
There are no plans at present to change treatment as the Government uses the Renewable Transport Fuel Obligation (RTFO) to incentivise the use of low carbon fuels and reduce emissions from fuel supplied for use in transport and non-road mobile machinery. HVO is eligible for Renewable Transport Fuel Certificates under the RTFO, and is eligible to receive twice the reward in certificates under this scheme where it is produced from waste.