RED/FQD

 

Renewable Energy Directive (RED)

The EU Renewable Energy Directive EC2009/28 (RED) now sets mandated fuel blending requirements of 10% by energy (circa 13% by fuel volume) of the total renewable transport energy pool.  This should be supported by an extension to current UK RTFO legislation to ensure UK obligated fuel suppliers also blend 10% RTFs.
Renewable Energy Directive

Fuel Quality Directive (FQD)

The Fuel Quality Directive EC2009/29 (FQD) mandates a 6% reduction in the Greenhouse Gas (GHG) emissions associated with liquid fuels.  The main route to achieving this is the use of sustainable biofuels as there are very limited options to reduce the "well-to-pump" GHG emissions of existing crude oil sourced fuels.

RTFs

This creates a huge market for RTFs (6.5bn litres UK, 49.5bn litres EU by 2020)and equates to a new marketin Europe the size of the global market for Renewable Transport Fuels in 2006.  Given current blending at around 8-10bn litres, this means a 5-6 fold uplift in just 10 years (it took Brazil 30 years to develop a market for 20bn litres).