Renewables industry group the Renewable Energy Association (REA) has welcomed the launch of a £25 million Government competition aimed at driving forward the development of advanced biofuels in the UK.

The competition was launched on Thursday (1st August) by Transport Minister Norman Baker. The funding will be provided over three years from 2015. EU legislators who voted to cap subsidy funding for first generation (crop based) biofuels earlier in the Summer said more incentives should be made available to drive the development of advanced biofuels, created from algae, waste and other sources that do not compete with agricultural production.  

The Transport Minister said on Thursday, "It is clear that in the long term advanced biofuels will be important in areas that we cannot otherwise decarbonise, such as aviation. This announcement will help put the UK in a good position to meet this demand."

However, REA called for greater certainty in the framework for current generation biofuels, which it claimed "is what investors really need to be able to confidently invest in the fuels of the future." REA Head of Renewable Transport Clare Wenner said, "Advanced biofuels, made using unconventional methods and feedstocks including wastes, can achieve exceptionally high environmental performance. The UK could certainly take a lead in developing advanced biofuels, spurring growth and creating jobs in a new industry.

"We urge Government to give investors a signal that the regulatory framework for renewable transport fuels will be extended beyond 2020 to at least 2030, to give entrants to the competition assurance that their investments will be underpinned by legislation."

Speaking to The Guardian, Transport Minister Norman Baker said "What we need to do is distinguish between good biofuels and bad biofuels, and this competition will produce good biofuels."

Clare Wenner responded "it is misleading to imply that current biofuels are 'bad'". These first generation biofuels, while attracting the animadversions of environmentalists, have nevertheless gained popularity with the EU's farm lobby, which sees the feedstocks as a lucrative opportunity.

However, last month the European Parliament voted to back EU Commission proposals to include the effects of indirect land use change (the extra environmental cost of converting 'natural' land to agriculture) from biofuel production in calculating emissions from crop-based fuels. Once these effects are factored in, calculations show some fuels, especially those from vegetable based plants like oilseed rape, are worse for the environment than fossil fuels.     

Even so, Ms Wenner continued, "Current biofuels, which meet strict sustainability criteria, can make a major contribution to renewable energy and emissions reduction targets in the short term, and enable the investments for R&D into advanced biofuels, with even better environmental performance, over the medium term. The key missing ingredient for both is a clear and supportive policy framework."