§ Baroness Byfordasked Her Majesty's Government:
What further steps they propose to take to stimulate the bioethanol industry. [HL879]
§ Lord WhittyThe Government are promoting the production of bioethanol through the 20 pence per litre cut in the duty rate that came into effect on 1 January this year. Work is also being carried out on a feasibility study on a renewable transport fuel obligation, and consideration is being given to the application of enhanced capital allowances to biofuel processing plants. The UK's 2005 and 2010 targets under the biofuels directive for the use of biofuels should also help to stimulate the bioethanol industry. The directive does not require the target for 2010 to be set until 2007. But the Government will announce an ambitious but realistic 2010 target as soon as possible in 2005, once the feasibility study on the obligation has been completed and possible delivery mechanisms have been considered.