British bioeconomy growing rapidly - report

Despite recently expressed criticism by British MPs that the UK is lacking ambition on bioenergy, the bioeconomy in the country is expanding rapidly, with a fivefold rise in sales of biofuels (for transport, heating and electricity) between 2004-2005, the government said as it reviewed its non-food crops strategy.

But more effort should be made to educate the public in the future, and integrate supply chains and coordinate R&D, Defra said in its 'Creating Value from Renewable Materials' [*.pdf] report on progress made since the launch of the strategy in November 2004.

Biofuels are expanding rapidly but the UK is disadvantaged in relation to global leaders because it started to develop the market relatively late, the report said. Nevertheless, progress has been steady, according to the report's main findings:

• In England the overall area of land taken up with non–food crop production has risen by at least 75% between 2003 and 2005 with corresponding ‘farm gate' values of these crops almost doubling. During this time the number of farms growing non-food crops has increased by 20%.
• There has been clear progress in developing UK bioenergy sectors, albeit from relatively low starting positions compared to global leaders. In particular, there has been a fivefold increase in sales of biofuels in UK between 2004 and 2005 with production of biodiesel increasing at a similar rate between 2003 and 2005. The UK biofuel production capacity is continuing to expand, stimulated by the announcement of a Renewable Transport Fuels Obligation.
• A number of incentives have been announced by Government to help realise the potential of UK biomass including the creation of a new Defra funded capital grant scheme for biomass heat and funding for installation of biomass boilers in England . There is also an intention to launch a further round of the Bio-Energy Infrastructure Scheme in England in 2006/07. Alongside the establishment of a UK Biomass Energy Centre and development of a UK wide Biomass Strategy.
• Markets are gradually developing for range of innovative renewable materials and products including plant based pharmaceuticals, biolubricants, chemicals and construction products.

The report, produced by the UK's Department for Environment, Food and Rural Affairs (Defra) and the Department of Trade and Indutry (DTI), singles out four sectors as most promising and therefore as the areas government should concentrate on promoting: bioenergy for heat, power and transport, plant-based medicines, renewable construction materials and chemicals:
energy :: sustainability :: bioeconomy :: bioproducts :: biodiesel :: ethanol :: biomass :: bioenergy :: biofuels :: UK ::

Environment secretary David Miliband said: "There are clear signs that the bio renewables industry is expanding in the UK and this is set to continue. In England, we have seen increases in the numbers of farms and areas of land producing non-food crops, with sustainable and competitive growth across supply chains.

"There has been significant growth in the consumption and production of biofuels and use of biomass to produce heat and power. The report also highlights considerable progress in bringing to market a range of other renewable products."

Trade and industry secretary Alistair Darling said: "Bio renewables have great potential for the economy and the environment. The growth we are seeing - a 75% increase in land being used for non-food crops in the last two years alone - is very encouraging. Increasingly the farming industry is seizing on its potential.

"We have backed it with £66m through the Bio-energy Capital Grants Scheme. We will continue to support it.

"We want to be a world leader in these new technologies, with government support, the excellence of our science base and the commitment of the industry we can be."

The Defra / DTI publication comes days before the UK's House of Lords European Union Committee's report on the UK bio-fuel market and its position in a European context, expected to be published next week.