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RENEWABLE TRANSPORT FUEL OBLIGATION GETS OFF TO POOR START

Motor fuel from farm crops was once the great white hope of UK cereal and oil seed rape growers. At the time the price of wheat was about £60/tonne and the illusion of plentiful supplies for ever more was widespread and believed by the chattering classes. The NFU, the government, the EU and agribusiness thought it was a good idea too and the concept of a compulsory inclusion of 2.5% of bio-fuel in petrol and deisel was born.

Sadly, now bio-fuel inclusion day has arrived, the picture has changed. Wheat is worth rather more than it was, as is oil seed rape, and it has, in any case, suddenly become public knowledge that much of the bio-fuel that is available at the pumps is derived from imported palm oil and soya. Add to that the fact that the balance between energy gained and that expended is said to be marginal in some cases and the current hostility to bio-fuels and the RTFO was predictable.

What made it inevitable was the rising price of food. Consumers, prompted by the media, have quickly realised that commodities diverted to make fuel were significant in raising the price of food in the shops and the scene was set for a negative reaction. And bodies that might have been expected to support green energy a few years ago have suddenly become vociferous in their opposition.

How quickly things change. How fickle is public opinion. How predictable that when costs rise to support vital supplies consumers always favour the cheapest option, whatever they may say they really believe.

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This page contains a single entry from the blog posted on April 15, 2008 10:10 AM.

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