Chancellor turns his back on biofuels, says Saab

In response to the Chancellor’s announcement that the fuel duty rebate for biofuels will expire from 2010 Jonathan Nash, Managing Director of Saab Great Britain, ‘fears that the Government has turned its back on biofuels.’

‘I am deeply disappointed that the Chancellor has announced the removal of the fuel duty rebate for biofuels from 2010. The lack of long term consumer incentives for the use of high blend biofuels is a clear indication of the Government turning its back on this technology.

‘Although the Chancellor has stated he will encourage the development of sustainable biofuels by increasing the buy-out price for suppliers under the Renewable Transport Fuels Obligation, we are fearful that this will do nothing to encourage the use of E85 and could drive up the cost of eco-friendly bioethanol E85 at the pump for the consumer.

‘The UK continues to fall behind other European countries where a more generous package of incentives is encouraging consumers and fuel providers to embrace this exciting technology right now, and reduce the environmental impact of their new car purchase.’