The UK government has launched a funding competition for projects developing low-carbon alternatives to red diesel use in construction, mining and quarrying.
Red diesel makes up 15pc of all diesel used in the UK and leads to roughly 1pc of the UK's GHG emissions, the government said, and the competition will support technologies that will reduce carbon and air pollution emissions, as well as providing a "zero biomass solution."
The UK government advisory group Committee on Climate Change recommends a greenhouse gas (GHG) emissions reduction of 50pc by 2035 for non-road mobile machinery, which accounts for the majority of the lower-taxed red diesel consumption.
To be eligible for the competition's funding, proposed fuels must be hydrogen- or electricity-based or fall under the Renewable Transport Fuel Obligation (RTFO) definition of a development fuel. Segregated waste fats and oils are not eligible, and non-biogenic waste feedstocks must align with the UK's proposals for recycled carbon fuels, although these remain under development. Applicants must demonstrate the long-term pathway — beyond 2040 — for fuels other than hydrogen or power-based options.
The budget for the competition is £40mn, with a maximum of £460,000 available per project in the first phase. Applications for the first phase will close on 22 November, and the second phase will begin in 2023.
A recent study by Imperial College London and the Centre for Low Emission Construction showed only slight changes in emissions levels when comparing red diesel against hydrotreated vegetable oil (HVO), in two construction excavators. There was a "slight" decrease in carbon emissions and particulate-matter emissions when HVO was used, compared to red diesel, the study said.
It will be more challenging to decarbonise heavy machinery and heavy good vehicles (HGVs), according to biofuels industry participants, although this year has seen an increase in biogas options for heavy transport. Finnish refiner St1 and dairy company Valio partnered in June to produce renewable biogas for HGVs in that country, and UK biomethane supplier CNG Fuels now operates seven biomethane HGV refuelling stations and plans to open a further 12-14 by the end of 2022.
