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20th April, 2006

Green diesel

Filed under: Technology, — bsag @ 04:05 PM

Sometimes I just despair of the Government ever making sensible policies to promote more sustainable use of our resources. For example, I was stunned to find out while watching It’s Not Easy Being Green (which is an excellent programme, by the way) that biodiesel—-made from used vegetable oil—-attracts duty. Though according to this HM Revenue and Customs page, biodiesel attracts a ‘discounted’ rate of duty: a whole 20p per litre less than standard sulphur-free diesel. That’s just crazy. If they were really serious about reducing reliance on fossil fuels and reducing net CO2 production, there should be no duty on biodiesel. It’s not as if it’s a piece of cake to produce. On It’s Not Easy Being Green, Dick Strawbridge showed how you have to filter the oil (you don’t want bits of crispy batter sloshing around in your engine), then put it through a transesterification process which involves adding a catalyst, heating gently and leaving it for 24 hours. Coincidentally, there was an article in Wired this morning about a new process being developed which greatly simplifies producing biodiesel. Anyway, the point is that it’s a bit of a hassle compared to pulling up at a garage and inserting the nozzle, so people who are sufficiently green-minded (or miserly) to do it should be rewarded by not having to pay duty on it.

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    I had no idea that bio-diesel was taxed like that! And I agree that it's stupid.

    But sadly, contrary to popular opinion and what most environmentalists would like to believe, the adoption of bio-diesel is unlikely to reduce carbon emissions – rather just the opposite:

    Bio-diesel worse than fossil fuel. Feeding cars not people.

    -:o(

    Much better off ditching the cars altogether and getting a bike.----- Those articles ignore some key elements in the bio diesel 'vision' (for lack of a better word). The concerns over land competition have been addressed by migrating to more efficient sources of oil. Seaweed for example.

    Dig deeper.

    But I agree, promote bikes. Close off downtown streets and use other methods to promote a more healthy population and environment by reducing fuel consumption and increasing physical activity. Sadly though the opposite is happening. Look at China - they are moving bikes off the street to make room for more cars in their downtown areas.

    There is no leadership on this planet when it comes to planning for a healthy future - we keep voting for Bushes.

    by Will Merydith @ 20/04/2006 8:04 pm • Permalink

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    A family friend converts cars to burn vegetable oil instead of (or as well as) diesel, and for every liter of oil has to pay around 30p in tax which makes it only a few pence cheaper than diesel too.

    The ideal thing is to recycle old oil from the local chippy or whatever, since you get it for free, or at least for less the retail. Unfortunately I understand that in interests of making money from everything, the government define anything over a set amount (I heard 400 liters), as a 'refinery' which entails even more costs and paperwork than logging your oil use to pay your taxes.

    by Ian @ 21/04/2006 12:05 pm • Permalink

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    Bio diesel is sadly not a real solution as suggested above but as they said in the program because it is carbon neutral. The only real completely clean fuel would be to make hydrogen from renewable sources and then use that in a car. But the bike is still a better option, not great long distance tho.

    by Electra @ 22/04/2006 1:05 pm • Permalink

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    All: Of course reducing demand is the best way to reduce reliance on fossil fuels, emissions and so on---that, I think is undisputed. And I agree that bikes (plus walking, public transport etc.) should be promoted as alternatives to cars, whatever they run on. Regular readers will know that I try to practice what I preach. I have a car but walk to and from the station and use the train to commute, shop etc. And of course no-one imagines that we are going to be able to run every vehicle in the UK on used chip fat. But every car running on chip fat rather than petrochemical diesel is reducing CO<sub>2</sub> (and CO and particulate) emissions, and using a resource that would just be thrown away. So my point was that it's irresponsible to charge nearly the same duty on that fuel as diesel.

    by bsag @ 22/04/2006 3:04 pm • Permalink

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    Like you, I couldn't believe the TV narrative that our Govt. is so money-grabbing in applying VAT to non-commercial production of bio diesel! What's the point of penalising individuals who have the energy and enthusiasm to try and be more green.

    I also remember when diesel prices were cheaper than petrol! What happened there? Diesel is now c. 10p per litre more. Where is the strategy? Oh, yeah. A presumption that most diesel consumers are commercial buyers. Ergo, not so price sensitive to a <strike>money-grabbing </strike> prudent Chancellor with a war to finance.

    by LukePDQ @ 27/04/2006 12:05 am • Permalink

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    I am a diesel fuel sysyem tech I rebuild diesel pumps and injectors Bio- diesel is hamfull to the fuel system and will cause damage to you system and cost high $ to rebuils the parts people are going to make a lot of money with this junk

    by jerry @ 02/05/2006 6:05 pm • Permalink

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    Of course duty should be added to vegetable oil fuel alternatives, If any 'green' alternative is going to work and be taken seriously then it should also fit with the financial framwork that modern countries have to adhere to. You cannot simply ignore the outside pressures on govnernments that exist.

    The argument over diesel prces is weak, people obvioulsy liketo blame politicians and seem to think they hold a magic wand. Commodity prices are determned mostly by demand, the demand for diesel is increasing to unknown levels and as such refineries and supplies have to alter there provisions, hence an understandable price rise. There may be other factors but Green advocates do nothing for their aims by blaming it on conspirators.

    Real change will require real alternatives and a system in place that accepts the needs and demands of others, or you will not make it 'sustinable'.

    I cycle, I teach cycle safety and work for a conservation charity, we are all just scratching the surface. Not much will change until it really has too,then there will be a shift.

    by Leon Hayward @ 24/05/2006 11:06 am • Permalink

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    I agree that vat should be added to bio-diesel once it has been sold for road use, but if used veg oil has been used to produce this bio-diesel then the chancellor has already had his vat when the oil was bought new, there should be no fuel duty to pay, as this bio-diesel is a great way of recycling a product that is otherwise difficult to dispose of. and with current diesel duty of 47.1ppl who can blame these people using bio-diesel.


    by rob taylor @ 23/08/2006 9:08 am • Permalink

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