§ Lord Palmerasked Her Majesty's Government:
By what percentage greenhouse gases are reduced when (a) biodiesel is substituted for fossil diesel, (b) bioethanol is substituted for petrol; and (c) bioethanol is substituted for liquid petroleum gas (LPG). [HL5720]
§ Lord Macdonald of TradestonThe Government are keen to establish the environmental benefits of alternative fuels and have commissioned detailed research into the carbon and energy balances of different fuels including petrol, LPG and biofuels.
The draft report of a study commissioned by the Department of the Environment, Food and Rural Affairs (Defra) from Sheffield Hallam University on the environmental benefits of biodiesel suggests that a 53 per cent saving in lifecycle greenhouse gas emissions is possible from biodiesel produced from rape seed when compared with conventional ultra low sulphur diesel (ULSD). This supports the Government's decision to introduce a 20p per litre incentive for biodiesel, which came into effect on 26 July. The Sheffield Hallam report can be viewed at http://www.shu.ac.uk/rru/reports.html
Research published in 1996 by the Energy Technology Support Unit (ETSU) found that the lifecycle greenhouse gas balance for ethanol was apporoximately 50 per cent lower than that for petrol and about 42 per cent lower than Liquid Petroleum Gas (LPG). With an aim to updating these figures, the Department of Trade and Industry (DTI) has commissioned an up-to-date study from Sheffield Hallam to look at the latest evidence on the environmental benefits of biofuels, including ethanol. This study is due to report by the end of the year.
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§ Lord Palmerasked Her Majesty's Government:
What is the fuel duty on bioethanol in pence per litre; and what, converted to pence per litre, is the fuel duty on liquid petroleum gas (LPG). [HL5721]
§ Lord Macdonald of TradestonBioethanol currently attracts duty as a substitute fuel for petrol at a rate of 45.82p per litre. The Government are also considering bids for the second round of the Green Fuels Challenge (GFC) which closed on 31 July. The GFC offers a zero rate of duty to demonstration projects for green fuels, including ethanol, which offer to develop expertise and knowledge in this area.
Liquid petroleum gas attracts duty at a rate of 9p per kilogramme. This translates to a rate of around 6p per litre when the gas is in liquefied form.