§ Mr. LidingtonTo ask the Secretary of State for Environment, Food and Rural Affairs if it is her policy to encourage the growing of crops for biofuels; and if she will make a statement. [26445]
§ Mr. MorleyThis Department allocated support of £29 million to solid biomass crops through the Energy Crops Scheme, part of the England Rural Development Programme. We are also working with other Departments to put in place schemes with funding of £70 million which will develop markets for biomass in heat, combined heat and power and electricity generation. Following the Green Fuel Challenge my right hon. Friend the Chancellor of the Exchequer announced that a new duty rate for biodiesel, set at 20p per litre below the rate for Ultra Low Sulphur Diesel, is to be introduced in Budget 2002. Any additional measures to develop biofuels from crops must be based on sound evidence and this Department has recently commissioned a six-month study, on behalf of the Government-Industry Forum on non-food uses of crops, to provide an independent, comprehensive and rigorous evaluation of the comparative energy, environmental and socio-economic costs and benefits of biodiesel production in the UK. The study will compare results with those for other relevant green fuels and relevant energy saving measures.