British finance minister likely to cut duty on biodiesel for trains
Sir Richard Branson, the billionaire serial entrepreneur who recently announced that he will be investing US$3 billion in green energy, operates 'Virgin Trains' in the UK. His business is close to winning a concession from British finance minister Gordon Brown that will launch the UK's first biofuel-powered rail service.
Virgin is lobbying the Treasury for a temporary concession on duty for blended biofuel, which is seven times the levy for industrial diesel fuel. The private train operator has warned that it will not go ahead with a planned biofuel trial on its trains if the government does not grant an incentive for using renewable energy sources.
Virgin plans to run its fleet of diesel-powered Voyager trains, which operate on the Cross Country Penzance-to-Aberdeen franchise, on a blend of biofuel and diesel as part of an environmentally friendly scheme.
The biodiesel to be used will likely be made from feedstocks from the developing world, blended with local feedstocks (such as rapeseed). The biofuel is carbon-neutral because the carbon emitted when it is burned was absorbed from the atmosphere while the plant grew. In the UK, the duty on pure biodiesel (B100) is 6 pence per litre, 1 pence cheaper than so-called "red diesel", or industrial diesel. However, the duty on blended biofuel and diesel is 50 pence per litre and Virgin hopes the Treasury will cut the levy substantially:
biodiesel :: biomass :: biofuels :: energy :: sustainability :: trains :: railways :: duties :: CO2 :: climate change ::
"Using biofuels is an exciting and unprecedented initiative on British railways," said a Virgin Trains spokesman. "We have had extremely positive discussions with government and our industry partners to bring this about. But there is still detailed work to be done." A spokesman for the Treasury declined to comment on the discussions. An announcement may be made in the pre-budget report next month.
The Virgin trial hopes to start with one train in the New Year. If the six month experiment is successful, the entire 78-strong fleet of Voyager engines will be converted to biofuel.
The fleet uses around 90 million litres of diesel per year and generates 3.2kg of carbon per mile.
Elsewhere on the Virgin transport empire Virgin Atlantic, Sir Richard's airline business, is leading the formation of an aviation industry body dedicated to combating climate change. The organisation's first meeting will take place on October 30, with airlines, airports and aircraft manufacturers expected to attend. However, scientists have warned that running aircraft on a biofuel such as bioethanol could be dangerous.
Virgin is lobbying the Treasury for a temporary concession on duty for blended biofuel, which is seven times the levy for industrial diesel fuel. The private train operator has warned that it will not go ahead with a planned biofuel trial on its trains if the government does not grant an incentive for using renewable energy sources.
Virgin plans to run its fleet of diesel-powered Voyager trains, which operate on the Cross Country Penzance-to-Aberdeen franchise, on a blend of biofuel and diesel as part of an environmentally friendly scheme.
The biodiesel to be used will likely be made from feedstocks from the developing world, blended with local feedstocks (such as rapeseed). The biofuel is carbon-neutral because the carbon emitted when it is burned was absorbed from the atmosphere while the plant grew. In the UK, the duty on pure biodiesel (B100) is 6 pence per litre, 1 pence cheaper than so-called "red diesel", or industrial diesel. However, the duty on blended biofuel and diesel is 50 pence per litre and Virgin hopes the Treasury will cut the levy substantially:
biodiesel :: biomass :: biofuels :: energy :: sustainability :: trains :: railways :: duties :: CO2 :: climate change ::
"Using biofuels is an exciting and unprecedented initiative on British railways," said a Virgin Trains spokesman. "We have had extremely positive discussions with government and our industry partners to bring this about. But there is still detailed work to be done." A spokesman for the Treasury declined to comment on the discussions. An announcement may be made in the pre-budget report next month.
The Virgin trial hopes to start with one train in the New Year. If the six month experiment is successful, the entire 78-strong fleet of Voyager engines will be converted to biofuel.
The fleet uses around 90 million litres of diesel per year and generates 3.2kg of carbon per mile.
Elsewhere on the Virgin transport empire Virgin Atlantic, Sir Richard's airline business, is leading the formation of an aviation industry body dedicated to combating climate change. The organisation's first meeting will take place on October 30, with airlines, airports and aircraft manufacturers expected to attend. However, scientists have warned that running aircraft on a biofuel such as bioethanol could be dangerous.
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