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New Standard for Biofuels Industry to guarantee confident trading
Governments around the world are very serious about growing biofuels. Brazil has been producing bio-ethanol for their transport vehicles since the 1970s, and Europe wants biofuels to make a significant contribution to fuel in the future.
In the UK, we are implementing laws too. Biofuels must make up 2.5% of our petrol and diesel today. This figure will rise to 5%in 2010. In the UK, we will need to produce a lot more biofuel to meet that target.
There are two main reasons why biofuel is becoming such an important issue:
- The world is fast running out of fossil fuels and there are problems associated with greenhouse gas emissions and burning fossil fuels.
- In the UK we rely on fossil fuels located in politically hazardous parts of the world.
Sustainability is at the heart of the debate
Biofuels release carbon dioxide; but the plants grown for the biofuel (for example, the palm tree) absorb a comparable amount of carbon dioxide from the atmosphere. This delivers carbon neutrality, key to a sustainable energy policy.
But the great fear is that we may purchase fuel security at the expense of food security. Furthermore, energy is used in farming and processing the crops, and this can make biofuels as polluting as petroleum-based fuels, depending on what is grown and the sorts of pesticides used to treat it.
Biofuels need managing right through the supply chain
It’s a supply chain issue. More efficient production and transport of biofuels will reduce carbon emissions. All the parts in the chain must play their part and ensure sustainability so that business confidence can flourish.
Suppliers will need to develop more efficient production methods for biofuels. Transporting the energy from field to fuel will require close scrutiny and careful management.
The supply chain needs an international standard
Legislation and regulation of biofuels will allow customers access to a stable product with predictable quality of performance, adequate health and safety data, and a clear understanding of its impact on the environment.
To simplify trade in biofuels between countries, an international, auditable management standard like ISO 9000 and 14001 will help. The standard will also ensure individual country producers fulfil their obligations at home.
Today there are already some standards covering parts of the biofuel supply chain, for example the Round Table Sustainable Palm Oil (RSPO). The RSPO is an association created by organisations in the palm oil supply chain. The association promotes the growth and use of sustainable palm oil through co-operation within the supply chain and open dialogue with its stakeholders. Also other platforms are working on standards for other kinds of feed stocks.
UK government action
The UK government have set up the Renewable Transport Fuel Obligation (RTFO) programme. This requires 5% of the fuel sold at the pump by 2010 to be biofuel.
The RTFO is a system to monitor greenhouse gas savings, sustainability, and chain of custody (traceability) as to where the biofuel is coming from. For the time being, only reporting is required. However, it is most likely that this system will reward biofuels according to their sustainability performance at a later stage: the more sustainable the fuel is, the more financial gains a company realises. If a company can’t demonstrate sustainability, they will get punished.
The role for SGS
SGS is already involved with the work of the RSPO standard and is now working with the European standards bodies, specifically the Netherlands Standardization Institute (NEN), on the next revision of the standards linked to biodiesel.
In addition, SGS works in a number of areas along various supply chains helping companies and trade bodies assess the sustainability of given products, particularly feed stocks.
In the UK, a company must produce reports for the Renewable Fuels Agency. SGS can help and conduct report verification on a company’s sustainability.
SGS will only contribute to a robust programme that can prove something. Continuity of supply, operation and effective sustainability management are vital if the infant industry is to mature. SGS is actively involved in all these processes.
Related Links:
Visit the Renewable Fuels Agency website
Request more information via email
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