Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps is he taking to help ensure that HVO is adopted more by consumers.
Answered by Trudy Harrison
Hydrotreated Vegetable Oil (HVO) is one type of biofuel which can be used as a transport fuel. Biofuels are typically blended with petrol and diesel when sold on UK forecourts, as opposed to being offered for sale separately. HVO has been eligible for support under the Renewable Transport Fuel Obligation (RTFO) scheme for more than a decade.
The Department does not require data on the number of fuelling stations selling diesel containing HVO, or any other type of biofuel. Given the complexity of fuel supply chains placing such a requirement on fuel retailers would be burdensome. The Department regularly publishes renewable fuel statistics. These include the volumes of biofuel supplied UK-wide by type. In 2020, 38 million litres of biodiesel of HVO was supplied under the RTFO in the UK. The relatively low volumes of HVO supplied is explained in part by there being no HVO production in the UK currently, and HVO being relatively more expensive than other types of biodiesel. It is open to fuel retailers to advertise that the diesel they sell at the pump contains HVO. Whether suppliers and retailers choose to do so is a commercial matter.
As we transition to net zero, renewable fuels such as biodiesel will remain important in our efforts to reduce carbon emissions. To this end the Government increased targets for the supply of renewable fuels under the RTFO in December. It is also understood that HVO has the benefit of potentially being able to be supplied in much higher bends than the 10% biodiesel threshold currently referenced in the fuel standards for diesel. Using high blends of biofuels, or drop-in fuels, in captive fleets such as in the heavy vehicles sector, is an option to further maximise carbon savings. As part of the Transport Decarbonisation Plan, we committed to work with stakeholders to review the role of these fuels in compatible vehicles and potential measures to remove barriers to their deployment.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps is he taking to increase the use of HVO fuels.
Answered by Trudy Harrison
Hydrotreated Vegetable Oil (HVO) is one type of biofuel which can be used as a transport fuel. Biofuels are typically blended with petrol and diesel when sold on UK forecourts, as opposed to being offered for sale separately. HVO has been eligible for support under the Renewable Transport Fuel Obligation (RTFO) scheme for more than a decade.
The Department does not require data on the number of fuelling stations selling diesel containing HVO, or any other type of biofuel. Given the complexity of fuel supply chains placing such a requirement on fuel retailers would be burdensome. The Department regularly publishes renewable fuel statistics. These include the volumes of biofuel supplied UK-wide by type. In 2020, 38 million litres of biodiesel of HVO was supplied under the RTFO in the UK. The relatively low volumes of HVO supplied is explained in part by there being no HVO production in the UK currently, and HVO being relatively more expensive than other types of biodiesel. It is open to fuel retailers to advertise that the diesel they sell at the pump contains HVO. Whether suppliers and retailers choose to do so is a commercial matter.
As we transition to net zero, renewable fuels such as biodiesel will remain important in our efforts to reduce carbon emissions. To this end the Government increased targets for the supply of renewable fuels under the RTFO in December. It is also understood that HVO has the benefit of potentially being able to be supplied in much higher blends than the 7% biodiesel threshold currently referenced in the fuel standards for diesel. Using high blends of biofuels, or drop-in fuels, in captive fleets such as in the heavy vehicles sector, is an option to further maximise carbon savings. As part of the Transport Decarbonisation Plan, we committed to work with stakeholders to review the role of these fuels in compatible vehicles and potential measures to remove barriers to their deployment.
Asked by: Justin Tomlinson (Conservative - North Swindon)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps his Department has taken to expand access to (a) electric charging stations, (b) compressed hydrogen and (c) bio-fuels at fuelling stations across the UK.
Answered by Trudy Harrison
Government and industry have supported the installation of over 28,000 publicly available charging devices including more than 5,100 rapid devices – one of the largest networks of rapids in Europe. The Government will provide over £1.3 billion over the next four years to support the continued roll-out of chargepoints on motorways and major A roads, in homes and businesses and on-street. Government’s forthcoming EV Infrastructure Strategy will define our vision for the continued roll-out of a world-leading charging infrastructure network across the UK. The strategy will be published soon.
The UK is well placed to lead on hydrogen powered transport, and government is supporting the use of hydrogen cars, vans, buses and lorries through our £23m Hydrogen for Transport programme. As of December 2021, there are fourteen publicly accessible hydrogen refuelling stations across the UK providing hydrogen for road vehicles, with just over 350 hydrogen vehicles operating on UK roads. Additional refuelling infrastructure will be deployed as part of our plans to demonstrate at scale hydrogen fuel cell trucks on UK roads.
One of the benefits of biofuels is that they can be deployed using existing infrastructure. The Department has supported the supply of liquid biofuels at fuelling stations across the UK through the Renewable Transport Fuel Obligation which has been successful for 13 years in promoting a market for biofuels. The recent introduction of E10 in September 2021 now means that up to 10% bioethanol is blended into petrol while diesel is also blended with up to 7% biodiesel, a grade known as B7.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to mitigate potential disruption to the fuel supply chain resulting from his Department's planned restriction regarding the future use of Hydrotreated Vegetable Oil from 1 April 2022.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, 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.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will grant waivers to dye (mark) rebated fuels such as Hydrotreated Vegetable Oil to support (a) a transition to duty harmonisation on 1 April 2022 and (b) the use of low carbon fuels on major projects including (i) HS2 and (ii) the Thames Tideway Tunnel.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, 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.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will amend the Governments' definition of biodiesel to include the classification of Hydrotreated Vegetable Oil.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, 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.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will amend the Biofuels and other Fuel Substitutes Excise Notice 179e to include Hydrotreated Vegetable Oil from renewable feedstocks under paragraph 5.5; and if will he make a statement.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, 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.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his policy of restricting the use of rebated Hydrotreated Vegetable Oil in certain diesel-powered vehicles, whether he plans to provide support to businesses which are running down stocks of HVO, including costs of cleaning out storage tanks, in preparation for the introduction of the duty harmonisation of fuels ahead of 1 April 2022.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, 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.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his policy of restricting the use of rebated Hydrotreated Vegetable Oil in certain diesel-powered vehicles from 1 April 2022, what steps he is taking to to introduce a harmonisation period to avoid potential pressures on fuels supplies.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, 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.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of potential implications for respiratory health of restricting the use of rebated Hydrotreated Vegetable Oil for use in certain diesel-powered vehicles, vessels and other appliances from 1 April 2022.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, 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.