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In Britain, (that is England, Scotland, Wales and Northern Ireland) all hydrocarbon fuels are subject to Excise Duty (tax) in accordance with the Hydrocarbon Fuels Act   In Britain this is interpreted as including organic vegetable and animal fats if used as a fuel for any purpose.  There are some tax reductions, and special rates apply for some fuels used for off road purposes.  Chancellor Gordon Brown provided a tax break of 20p per litre less than the current tax rate on ULSD with effect from the summer of 2002.  It is a commonly held view that this tax break is insufficient to stimulate a viable bio-fuels industry in the UK., however it does not stop us from selling our Bio-power technology overseas.

In Germany, Italy, Poland, USA, Australia and many other countries around the world, there is no charge of Duty on the use of non-fossil fuels for any purpose including transport.  This is because the taxation in the European Union only applies to 'Mineral' hydrocarbon fuels, and not to organic hydrocarbon fuels.  It is clear that Britain is a very long way behind our European partners in providing the legal framework to encourage and foster a viable bio-fuel industry.  We hear plenty of 'Green Speak' from politicians,  but little 'Green Do' from the British  government.

In recognition of the need to address the issues of Global Warming and Climate Change,  Britain is also signatory to the Non-Fossil Fuels treaty.  We have made an undertaking described in the 'Non-Fossil Fuel Obligation' (NFFO) to reduce the use of fossil fuels and encourage the introduction of renewable energy.  Britain has since attempted to reduce the rate of change to the absolute minimum.  This is very much an example of fiddling whilst Rome burns, except in the case of Global Warming it is the future of the whole planet that is so seriously at risk.  The government claims that the NFFO applies only to fuels used in the generation of electricity and does not relate to fuels used for transport purposes, yet this amounts to a very significant part of the carbon emission into the atmosphere.  It is our view that the obligation must apply to the use of transport fuels if the purpose of the undertaking is to be achieved at all.  In our view the scope must be broadened to cover the use of all fossil fuels in any situation, including high energy industries like cement manufacture, and transport fuels.  We also argue that the proposed extent of change from fossil to renewable fuels is far from adequate to save the fate of the planet.

As explained in the pages below, our policy is to comply with the existing legislation in the UK, and to ensure that it is applied properly and uniformly throughout all regions, whilst at the same time helping others to comply with the law by registering as fuel producers.  At the same time we will challenge the inadequacy of the present legislation and continually draw attention to the need for much greater restrictions on the use of fossil fuels and the facilitation on the use of renewable fuels.  It seems quite wrong to put any form of tax on the means to reduce the effects of Global Warming.  To this end we have submitted our report to the Treasury suggesting much better means of taxation that would better encourage the development and use of bio-fuels.

It has been accepted by Officers from the Customs & Excise, that our MWVF falls under the new lower rate of taxation for bio-fuels.  Pure recycled vegetable fat is 100% ester of glycerol, and being derived from waste or used fats stock it meets the criteria for the reduced tax rate.  Being organic it does not have a significant sulphur content.  Our additives which improve the performance of our fuel are taxed at the same rate as the fuel which it replaces or supplements, and they are also largely derived from organic esters.

            How it all began  the story of our initial interest in alternative road fuels

            Why we are registered as an alternative fuel producer

            The story of our first friendly visit by HM C&E

            A very different story of the second visit made by local officers from HM C&E

            How to register as an alternative fuel producer

            Tax forms and the Hydrocarbons Fuels Act

            Correspondence with Government Ministers, Departments, and Politicians

           Our Report to the Treasury as a .pdf

John Nicholson
Bio-power(UK) Ltd,
Rhostryfan,
Caernarvon,
Gwynedd
LL54 7NT

Telephone:  01286 830312
E-mail:        info@bio-power.co.uk     

December 2003