executive summary -...

Future skills needs in the York, North Yorkshire and East Riding Local Enterprise Partnership Area

Transitional Area: East Riding

Biorenewables:Biofuel

Beyond 2030 has produced this Report on behalf of Calderdale College and as part of the College’s delivery of the 2017-18 ESF funded Skills Support for the Workforce programme across the York, North Yorkshire and East Riding Local Enterprise Partnership Area.

July 2018

YNYER Future Skills Needs – Biorenewables: Biofuel

Executive Summary York, North Yorkshire and East Riding Local Enterprise Partnership (YNYER LEP) has

commissioned a series of research reports, which will allow key decision makers to understand more fully the future skills needs of the YNYER LEPs eight identified priority sectors.

Around the world, steps are being taken to move from a fossil fuel-based economy to a more sustainable economy based on a greater use of renewable sources.

The bioeconomy concept has moved from being a niche area to being in the political mainstream with over 50 countries publishing bioeconomy policies.

The UK bioeconomy generated approximately £220 billion in gross value added and supported 5.2 million jobs in 2014.

The LEP bioeconomy, which covers food, agri-tech and bio-renewables accounts for around 10% of the LEP’s GVA and employs around 45,000 people.

Biorenewable – or biobased materials - are any organic matter available on a renewable or recurring basis.

This report considers the production of biofuels within the wider biorenewables sector. Beyond 2030 spoke with 8 employers in this subsector across East Riding and relevant

stakeholders such as the such as the Biorenewables Development Centre, Stockbridge Technology Centre, Fera Science Ltd, Chilled Food Association, Lantra, Waste Management Industry Training and Advisory Board (WAMITAB) and East Riding Council to inform this report, in addition to drawing on the sources mentioned in the bibliography.

Transitional Area of East Riding

East Riding has a resident population of 337,700, of which nearly 160,000 individuals are employed. Employment rates stand at 76.2%.

The East Riding economy is mainly based on agriculture and this, along with tourism, has contributed to the rural and seaside character of the area.

Large employment sectors include health and social work, manufacturing and retail.

Biofuels

The European Union’s Renewable Energy Directive (RED) and the Fuel Quality Directive (FQD) are both driving the development of biofuels.

As transport is now the UK’s largest source of greenhouse gas emissions and air quality concerns are growing, there is a continued push to increase the use of biofuels in transport.

Average greenhouse gas savings from biofuels are around 70% compared to petrol and diesel.

The Renewable Transport Fuel Obligation (RTFO) stimulated around £1 billion of investment in UK biofuel production facilities.

Current data shows that 1,205 million litres of renewable fuel have been supplied in 2017/18, which is 3% of total road and non-road mobile machinery fuel.

UK feedstocks account for just 25% of biofuel.

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The growth of the biofuels market in the UK over the past eight years has been much slower than in the rest of the world. This is largely due to the level of biofuels supply being limited by the RTFO.

The UK’s manufacture of renewable fuels supports almost 1,000 direct jobs. However, companies across the supply chain are also involved providing employment

opportunities in the biofuel industry. Two major biofuel sites in East Riding include Vivergo and Brocklesby Ltd. Jobs in biofuels can cross many areas in the supply chain. For example, design and

development, manufacturing, construction and installation, feed-stock production, operations and maintenance and distribution.

New entrants in the bioeconomy workforce require skills in STEM subjects. Regulatory and technical changes within the sector require ongoing training and updates on

new developments. Following years of policy uncertainty and market stagnation, the Department for Transport

has announced changes to the RTFO, paving the way for future growth of the UK biofuels industry.

Acknowledgements Beyond 2030 would like to extend thanks to the employers in the TA area as well as both local and national stakeholders who provided their time and assistance in giving us valuable insights into the issues facing the subsector.

Beyond 2030 is indebted to Calderdale College for the guidance and support received in completing this report.

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ContentsExecutive Summary...............................................................................................................................2

Acknowledgements...............................................................................................................................3

1 Introduction to the LEP and the research......................................................................................5

1.1 Biorenewable sector..............................................................................................................5

1.2 East Riding TA........................................................................................................................6

2 Biofuels, East Riding.......................................................................................................................7

2.1 Introduction...........................................................................................................................7

2.2 Biofuels..................................................................................................................................8

2.2.1 Biofuels in transport......................................................................................................8

2.2.2 Subsector definition.......................................................................................................9

2.3 Biofuels economy and employment......................................................................................9

2.3.1 Jobs people do.............................................................................................................10

2.4 Skill needs - Primary research and testing the data.............................................................11

2.4.1 Recruitment.................................................................................................................11

2.4.2 What are the current skill needs and gaps...................................................................11

2.4.3 Skills needs / gaps........................................................................................................12

2.4.4 Training and apprenticeship........................................................................................12

2.5 Future roles and skills..........................................................................................................13

2.6 Drivers.................................................................................................................................13

2.6.1 Political........................................................................................................................13

2.6.2 Economic.....................................................................................................................14

2.6.3 Social and Environmental.............................................................................................14

3 Bibliography.................................................................................................................................16

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1 Introduction to the LEP and the research The York, North Yorkshire and East Riding Local Enterprise Partnership (YNYER LEP) has commissioned a series of research reports which informs key decision makers as to the future skills needs of eight identified priority sectors. These sectors are:

• Visitor Economy. • Food Manufacture.• Voluntary, Community and Social Enterprise (VCSE). • Health and Social Care. • Construction. • Engineering. • Agri-tech.• Biorenewables.

As the economic and political situation changes, it is almost universally acknowledged that improved skills, not least because of the link to enhanced productivity is a key way by which to improve economic well-being. Consequently, LEPs across England are looking at how best to support sectors with growth potential and which therefore may generate future wealth and prosperity.

In this research Beyond 2030 sought to understand fully the future skills needs required to ensure that within the YNYER LEP area, priority sectors can recruit and develop world class employees.

As well as wanting to understand the characteristics and future needs of the eight sectors, the LEP hopes to develop an understanding of the most significant subsectors in each priority area by geography.

1.1 Biorenewable sector The YNYER LEP has five priorities in its Strategic Economic Plan. The second of these priorities is the aim to be, ‘a global leader in food manufacturing, Agri-tech and biorenewables’ (York, North Yorkshire and East Riding LEP 2014).

Biorenewable – or biobased materials - are any organic matter available on a renewable or recurring basis. This includes plant matter both living and in waste form, as well as animal matter and their waste products. Biorenewable resources are generally classified as either waste or dedicated energy crops (BDC 2015). A waste is a material that has traditionally been discarded because it has no apparent value or represents a nuisance or even a pollutant to the local environment. Dedicated energy crops are plants grown specifically for producing biobased products for purposes other than food. Consequently, biorenewables is not an industry that has been clearly defined in existing Standard Industrial Classification (SIC).

Examples of biorenewable resources include:

Wood from natural forests and woodlands. Forestry plantations and residues. Agricultural residues such as straw and corn stover. Algae. Municipal solid wastes (MSW). Industry processing wastes (i.e. food waste such as grain hulls). Manure.

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This report considers the production of biofuel within the wider biorenewables sector in the Transitional Area (TA) of East Riding.

1.2 East Riding TA East Riding is in the wider region of Yorkshire and Humber. It borders North Yorkshire, South Yorkshire and Lincolnshire and covers over 900 square miles. The Humber Estuary and North Sea mark its southern and eastern limits. There are few large settlements, with Beverley, Bridlington and Goole being amongst the best known. Around half of the population live in rural communities.

The economy is mainly based on agriculture and this, along with tourism, has contributed to the rural and seaside character of East Riding. The area has many historic buildings, nature reserves and the Yorkshire Wolds Way long-distance footpath.

The open and maritime aspects and lack of major urban developments have led to the County being allocated relatively high targets for the generation of energy from renewable sources. Easington Gas Terminal, owned and operated by Centrica Storage, is one of only three main terminals that processes gas from the UK Continental Shelf.

Goole is a significant dock area which serves as a major source of employment in logistics and related sectors.

Bishop Burton is home to Bishop Burton College, a further education and higher education college specialising in agriculture and equine studies.

East Riding has a resident population of 337,700, which equates to 30% of the LEP’s total resident population (ONS 2017). Nearly 160,000 individuals are employed in the area. Employment rates stand at 76.2% (Table 1). The area has a growing and increasingly ageing population and deprivation is evident in some areas (East Riding Council 2016).

Using YNYER LEP as the standard, differences in the productivity, skills and employment across East Riding can be seen. Table 1 illustrates where the area performs better (green) or worse (red). For example, the job density is much lower in East Riding, as is the employment rate compared to the YNYER LEP area.

The economic inactivity rate is also much higher in East Riding (20.6%). While many of these are either retired, students, or looking after the home/family, it is worth noting that 24% (9,800) would like employment (ONS 2017).

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Table 1 Productivity, skills and jobs:

Measure East Riding

North Yorkshire

York YNYER LEP

England

Gross Weekly pay full time (£) (place of residence, 2016)

£498.30 £489.10 £509.60 £504.70 £544.70

Job density (the ratio of total jobs to population aged 16-64, 2015)

0.69 0.96 0.85 0.86 0.84

Employment Rate (Apr 16-Mar 17) 76.2% 80.7% 77.5% 78.8% 75.6%Self-Employment (Apr 16-Mar 17) 10.4% 13.9% 9.7% 12.0% 10.9%Full-time workers (employees) 66.1% 63.1% 62.7 63.8% 69.1%Unemployment Rate (Apr 16-Mar 17) 3.7% 2.9% 3.0% 3.2% 4.4%Economically Inactive (Apr 16-Mar 17)

20.6% 16.8% 20.0% 18.5% 20.9%

Level 4+ (Jan 2016-Dec 2016) 36.5% 35.9% 42.7% 37.5% 37.9%No Qualifications (Jan 2016-Dec 2016) 6.2% 6.5% 6.1% 6.3% 7.8%

Source: Office for National Statistics: LEP and National Labour Market Profiles; GVA for Local Enterprise Partnerships

2 Biofuels, East Riding2.1 Introduction In the East Riding Economic Strategy, it is reported that the Council will adopt an integrated approached with the LEP, linking to their priorities including becoming ‘a global leader in food manufacturing, Agri-tech and biorenewables (East Riding Council 2016).

The YNYER LEP is home to a cluster of innovation and research facilities predominantly in and around the City of York, such as BioVale, Biorenewables Development Centre, the National Agri-Food Innovation Campus, Fera Science Ltd. and Stockbridge Technology Centre. This presents East Ridings’ bioeconomy with growth opportunity and the potential to make a large contribution to the LEP’s second priority. A challenge will be to mediate between the drive for greater productivity and the need to listen to environmental calls to maintain the wider ecosystem.

Furthermore, East Riding Council’s fourth priority is a ‘Sustainable Economy’. However, growth in the regional bioeconomy will require the supply of increased levels of sustainable feedstock and this is identified as a challenge to growth in the sector (East Riding Council 2016). The East Riding area has the capacity to meet this growing demand through developing its supply chain in home-grown sustainable feedstocks. Several sectors produce biomass (including arable farming, forestry and waste processing) and are well placed to meet this demand. Furthermore, a growing bioeconomy supported by Research, Development & Innovation will result in greater demand in terms of yield and variety of feedstock.

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2.2 BiofuelsThe European Union’s Renewable Energy Directive (RED) and the Fuel Quality Directive (FQD) are both driving the development of biofuels. The RED mandates that 20% of EU final energy use should be derived from renewable sources and includes a sub-target that 10% of the energy used in transport should be derived from renewable sources (European Commission 2018). Consequently, biofuels and bioliquids will be instrumental to meeting this target.

The UK is committed to meeting 15% of its energy needs from renewable sources by 2020, with a 10% target in transport (DECC 2011). In 2016, renewables in transport accounted for 4.5% (BEIS 2018).

2.2.1 Biofuels in transport As transport is now the UK’s largest source of greenhouse gas emissions and air quality concerns are growing, there is a continued push to increase the use of biofuels in transport (DfT 2018). Average greenhouse gas savings from biofuels are around 70% compared to petrol and diesel (HM Government 2017).

The Renewable Transport Fuel Obligation (RTFO) stimulated around £1 billion of investment in UK biofuel production facilities, including, for instance, Argent Energy’s £75 million production plant in Cheshire which is using innovative technology to turn sewage waste into biodiesel and Vivergo’s £350 million plant near Hull.

Biofuels are liquid or gaseous transport fuels such as biodiesel and bioethanol which are made from biomass, such as waste products, non-agricultural residue or sourced from crops. The petrol substitutes are biomethanol and MTBE (methyl tern-butyl ether), and the diesel substitutes are FAME (fatty acid methyl ester), HVO (hydrogenated vegetable oil) and pure plant oil (BEIS 2018).

Current data shows that 1,205 million litres of renewable fuel have been supplied in 2017/18, which is 3% of total road and non-road mobile machinery fuel (DfT 2018). 76% of this fuel has been demonstrated to meet sustainability requirements. Bioethanol comprised 49% of supply, biodiesel 47% and biomethanol 4%.

UK feedstocks account for just 25% of biofuel. Consequently, the UK is having to import feedstocks. The most widely reported source for biodiesel (by feedstock and country of origin) was used cooking oil from the US (88 million litres, 10% of total fuel, 21% of biodiesel) (DfT 2018). The most widely reported source for bioethanol (by feedstock and country of origin) was wheat from UK (119 million litres, 13% of total fuel, 27% of bioethanol).

The growth of the biofuels market in the UK over the past eight years has been much slower than in the rest of the world, effectively stagnating (Royal Academy of Engineering 2017). This is largely due to the level of biofuels supply being limited by the Renewable Transport Fuel Obligation (RTFO) (Royal Academy of Engineering 2017). Producers, therefore, have no policy or market incentives to produce above the amount set in under the RTFO. This has led to many plants running below installed capacity.

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2.2.2 Subsector definition New sectors such as renewables are not currently covered by the Standard Industrial Classification (SIC) categorisation in detail. Consequently, obtaining robust data on jobs associated with the sector is difficult.

Innovas undertook some research into companies across the renewable supply chain. It relied on ‘bottom up’ data based on what companies do rather than their SIC. They therefore included companies where 20% of their turnover is supplied into the sector (REview 2017). Beyond 2030 has set out their findings for those working in biofuels below.

2.3 Biofuels economy and employment The UK’s manufacture of renewable fuels supports almost 1,000 direct jobs many of which are in the north-east (DfT 2018). The UK’s bioethanol sector comprises two big plants — Vivergo in Hull with 420 million litres a year capacity and the 400 million litre capacity Ensus on Teesside.

However, companies across the supply chain are also involved providing employment opportunities. Table 2 below demonstrates that over 600 firms were involved in biofuels, employing 10,000 individuals.

Table 2 Size of the UK Liquid Biofuel Sector

2011-2012

2012-2013

2013-2014

2014-2015

2015-2016

Sector Turnover (£ millions) 340 358 340 347 1,500No. people employed across the supply 3,500 3,509 3,829 3,914 10,000No of UK companies across the supply chain 200 200 211 211 608

Source (REview 2017)

Two major biofuel sites in East Riding include:

Vivergo, which employs 150 skilled people at their production site in Hull and head office in Hessle as well as supporting over 3,000 jobs directly and indirectly.

Brocklesby Ltd. are a family owned company, based on a ten-acre site in North Cave in the heart of East Yorkshire. They recycle used edible cooking oil and fatty food waste to produce biodiesel. In 2017 they employed 45 individuals: 21 in the factory, 17 in administration and 7 drivers.

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2.3.1 Jobs people do Jobs in biofuels can cross many areas in the supply chain. For example, design and development, manufacturing, construction and installation, feed-stock production, operations and maintenance and distribution. Examples of jobs roles are shown below:

Table 3 Job roles in the biofuel supply chain

Design and development

Design engineer, Project manager, Economist, Electrical systems designer, Environmental engineer, Biotechnologist, Chemist, Agriculturalist, Environmental consultant, Feedstock handling systems designer.

Manufacturing Design engineer, Project manager, Welder, Sheet metal worker, Chemist, Agricultural specialist, Microbiologist, Biochemist, Electrical engineer, Mechanical engineer.

Construction and installation

Planning consultant, Environmental consultant, Project management and construction workers, Electrical engineer, Power generation engineer, Project manager, Health and safety manager, Pipefitter, Welder, Electrician, Service engineer.

Feed-stock production

Farmer, Agricultural operative, Waste operative, Civil engineer, Water engineer, Irrigation engineer, Process engineer, Chemical engineer, Electrical engineer, Field technician, Tanker driver, Warehouse manager.

Operations and maintenance

Chemist, QC Laboratory staff, Electrical engineer, Power generation engineer, Energy trader, Boiler engineer, Pipefitter, Welder, Electrician, Service engineer, Construction worker, Electrical/electronic technician, Plantoperator, Mechanic, Project manager, Fuel and ash supervisor, Labourer, Maintenance manager.

Distribution Distribution manager, Tanker driver, Blend operative, Forecourt operative.Source (REview 2017)

2.4 Skill needs - Primary research and testing the data2.4.1 Recruitment Recruitment opportunities are clearly evident in the subsector. For example, Vivergo had positions available for:

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Vivergo The £350m plant based in East Riding started operation in the winter 2012, with full production rates achieved in 2014.

It produces enough bioethanol to meet up to one half of the UK’s current demand. They also deliver into the market enough high protein animal feed (DDGS) to feed nearly 20% of the UK dairy herd every day.

The energy is home grown: it comes from animal feed wheat grown within a 50-mile radius of the plant. Thereby Vivergo is directly supporting local farmers. In addition, the animal feed produced replaces the need for imported protein.


Electrical & Instrumentation Technician. Mechanical Technician. Grains Procurement Lead.

One engineering firm highlighted the lack of diversity in recruiting. They have a shortage of engineers, but the recruitment pool consists mainly of male applicants. They believed that there is a lack of encouragement for females to move into an engineering career.

When firms where asked about challenges and threats facing the organisation and sector, feedback frequently mentioned regulation.

To note is that Vivergo shut down their plant in December 2017 because of market conditions and legislative uncertainty (Vivergo Fuels 2017). Prior to the shutdown, bioethanol prices fell significantly impacting Vivergo’s profit margins and there was no clear roll-out framework for E101 in the UK creating further uncertainty. The changes in the Renewable Transport Fuel Obligation (RTFO) introduced in April 2018, which will see use of renewable fuels in transport from 4.75% to a target of 9.75% by 2020 has since seen the plant reopen in April 2018.

With many agricultural firms in the area suppling the plant, the shutdown affected a supply chain across the area.

2.4.2 What are the current skill needs and gaps2.4.2.1 Skills levelsNew entrants in the bioeconomy workforce require skills in STEM subjects, with 61 per cent of degree holders in the bioeconomy having a STEM degree compared with 38 per cent in the workforce as a whole (Eaves, et al. 2017).

Most scientist positions require a degree, with practical laboratory experience. Those leading research may need a masters or doctoral degree. Analytical skills are important for those conducting experiments and determining an outcome or a reasonable way to continue an experiment.

In the biofuel industry, many engineers are involved in much of the same work as scientists, evaluating both existing and potential feedstocks, and examining which sources provide the best energy at a reasonable cost. However, they also may work on processing facility design and be familiar with industrial equipment. Such positions require a high level of skills.

2.4.3 Skills needs / gaps From our primary work Beyond 2030 suggests that the following occupations and skills are particularly needed and valued by employers.

For procurement roles, experience of wheat varieties was sought, along with the ability to negotiate contracts. Thereby, individuals need to be commercial astute and able to build relationships with stakeholders. Analytical skills were also sought.

In technical roles, engineering skills were sought. There were mainly mechanical and electrical skills: skills that are widely reported to be in short supply (EngineeringUK 2018).

1 E10 is a biofuel made up of 90% regular unleaded and 10% ethanol

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Fera Science reported looking for scientists with an interest in applied science, but who are interested in innovation and ultimately generating new products and services. Good communication skills were also key.

2.4.4 Training and apprenticeshipRegulatory and technical changes within the sector require ongoing training and updates on new developments. Firms also reported the need for laboratory training and management training.

There are courses and training opportunities available in the subsector, with many of the larger firms having graduate and apprenticeship programmes. Vivergo, for example, offer apprenticeships, internships and graduate placements.

2.5 Future roles and skillsAs transport is now the UK’s largest source of greenhouse gas emissions and air quality concerns are growing there is continued push to increase the use of biofuels in transport (DfT 2018).

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BioVale

BioVale help ensure that the workforce is equipped with the specialist skills and knowledge needed to compete in the fastmoving bioeconomy.

BioVale workshops provide tailored training and networking. They also encourage peer-to-peer learning via our Special Interest Groups (SIG) and networking opportunities. BioVale’s first SIG focusing on Anaerobic Digestion has been active since April 2016, organising a range of site visits, workshops and networking events. A SIG on Value from Unavoidable Food Waste was formed in May 2017.

They also working with the University of York to develop a scheme which helps early career researchers to establish bio-based businesses. The aim is to help de-risk business creation through a programme of support for student entrepreneurs, such as; competitive bursaries, specialised training, reduced rents and access to facilities.


The Renewable Transport Fuel Obligation (RTFO) supports the government’s policy on reducing greenhouse gas emissions from vehicles by encouraging the production of biofuels that don’t damage the environment (DfT 2012). If a company owns and supplies 450,000 litres or more of any road transport or non-road mobile machinery (NRMM) fuel for use in the UK during the course of an obligation year (15 April to 14 April) it must be able to show that a percentage of the fuel they supply comes from renewable and sustainable sources. The 450,000-litre figure includes all fossil fuels and biofuels.

The UK biofuel industry is dominated by the largescale operators. This is partly because smaller producers struggle to sell Renewable Transport Fuel Certificates (RTFCs) directly to obligated fuel suppliers as the number of RTFCs that they can supply is too low to generate interest from large suppliers (Royal Academy of Engineering 2017). In addition, smaller suppliers also typically do not have significant resources to handle complex certificate trading or price forecasting and their cash-flow position pushes them to sell their certificates as soon as possible, even if selling at a later stage could achieve a better price.

Shipping, aviation and heavy goods vehicles (HGVs) have fewer options for low-carbon fuels compared to passenger road transport and analyses of the future energy system suggest that they should be considered a priority for the development and use of biofuels (Royal Academy of Engineering 2017). This will require further innovations in the manufacture of vehicles and fuel quality.

2.6 Drivers2.6.1 Political Regulation

Following years of policy uncertainty and market stagnation, the Department for Transport has announced changes to the Renewable Transport Fuel Obligation (RTFO), paving the way for future growth of the UK biofuels industry.

Changes to the RTFO will compel owners of transport fuel who supply at least 450,000 litres a year or more, to make sure the mix is at least 12.4% biofuel by 2032 (DfT 2018).

Currently the industry, which supplies fuel to transport companies such as haulage firms and airlines, is only expected to meet a target of 4.75% biofuel (DfT 2018). The target will rise to 9.75% by 2020 and the 12.4% by 2032. By providing long term certainty, the DfT hope to encourage future investment in a sector where investors seem to be losing faith.

However, the Government has imposed restrictions on how this target can be met, limiting the contribution that crop-based biofuels can make towards the obligation to 4% in 2020, steadily declining to 2% in 2032. This will inevitably place a significant demand on waste biofuel feedstocks, notably on used cooking oil.

The RTFO has been extended to include incentives for use of biofuels in aviation, which may in the future increase demand.

Future Fuels for Flight and Freight Competition

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As part of the government’s drive to reduce carbon emissions, seven industry-led projects will receive a share of £2 million to develop proposals for advanced fuels production plants, (DfT 2018). Proposals include the production of aircraft jet fuel from steel mill waste gases, and a project exploring the use of waste wood to produce a synthetic natural gas for HGVs.

This is part of the Future Fuels for Flight and Freight Competition, which was launched in April 2017 to encourage private sector investment in the development of advanced fuel production facilities in the UK.

E10 petrol, consumer protection and fuel pump labelling

In July 2018, the Department for Transport launch a consultation seeking views on a range of issues related to renewable transport fuel supply in the UK (DfT 2018).

Unleaded petrol in the UK contains up to 5% bioethanol, a grade known as E5. E10 petrol contains up to 10% bioethanol and is not yet available in the UK. However, it is widely available across much of the EU, the United States, Australia and Brazil. Filling up with E10 fuel reduces the greenhouse gas emissions of a petrol vehicle by around 2%. However, according to industry figures, there could be around one million cars within the UK that are unsuitable for use with E10. Thereby consideration for these vehicles is required.

However, increasing the proportion of bioethanol in petrol to between 5% and 10% will impact suppliers. UK grown feed-wheat was the main feedstock used in the production of bioethanol in 2016/17. As a result, E10 introduction could provide a boost to UK industry and agriculture,

2.6.2 Economic At present UK feedstocks account for just 25% of biofuel. Consequently, the UK is having to import feedstocks.

The most widely reported source for biodiesel (by feedstock and country of origin) was used cooking oil from the US (88 million litres, 10% of total fuel, 21% of biodiesel) (DfT 2018). The most widely reported source for bioethanol (by feedstock and country of origin) was wheat from UK (119 million litres, 13% of total fuel, 27% of bioethanol).

Biofuels can be traded globally, unlike power and heat which can only be transported shorter distance, which opens further possibilities.

2.6.3 Social and Environmental Bioethanol is considered a sustainable and realistic means of contributing to the reduction of GHG emissions. Vivergo’s fuel offers GHG savings of over 50% against standard petrol production, the equivalent of taking 180,000 cars off the road (Vivergofuels 2017).

However, the use of biofuels does have some critics. The carbon impact from biofuels largely depends on how crops are cultivated and how fuels are produced. Some argue that the carbon impact from producing biofuels is no better than that from oil-based fuels.

Land use

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Expansion in the use of biofuels driven by the European Union’s Renewable Energy Directive (RED) has led to concerns that this may be contributing to deforestation and land use change, where land is brought into cultivation to grow food crops to compensate for lost production linked to biofuel feedstock production (the so called “indirect land use change” or ILUC impact) (Turley, Evans and Nattrass 2013).

In the UK, 76% of the renewable fuel supplied in 2017/18 has been demonstrated to meet sustainability requirements (DfT 2018). However, that means that potentially 24% is from unsustainable sources.

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3 BibliographyBDC. 2015. Biorenewables Development Centre 2012-2014 Progress Report. Biorenewables

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DECC. 2011. UK Renewable Energy Map. London: Department of Energy and Climate Change.

Defra. 2017. “Area of crops grown for bioenergy in England and the UK: 2008-2016.” GOV.UK. 6 December. Accessed May 2018. https://www.gov.uk/government/statistics/area-of-crops-grown-for-bioenergy-in-england-and-the-uk-2008-2016.

DfT. 2018. E10 petrol, consumer protection and fuel pump labelling. 20 July. Accessed July 23, 2018. https://www.gov.uk/government/consultations/e10-petrol-consumer-protection-and-fuel-pump-labelling.

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—. 2018. New regulations to double the use of sustainable renewable fuels by 2020. 13 April. Accessed June 2018. https://www.gov.uk/government/news/new-regulations-to-double-the-use-of-sustainable-renewable-fuels-by-2020.

—. 2012. Renewable Transport Fuel Obligation. 5 November. Accessed May 2018. https://www.gov.uk/guidance/renewable-transport-fuels-obligation.

—. 2018. Renewable Transport Fuel Obligation statistics: year 10, report 3. 3 May. Accessed June 2018. https://www.gov.uk/government/statistics/biofuel-statistics-year-10-2017-to-2018-report-3.

East Riding Council. 2016. East Riding Local Plan 2012 - 2029 Strategy Document. East Riding Council.

Eaves, J, A McQuilkin, M Mortimer, and R Smith. 2017. The Bioeconomy in the North of England. A Science and Innovation Audit Report sponsored by the Department for Business, Energy & Industrial Strategy, York: University of York.

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HM Government. 2017. The Clean Growth Strategy: Leading the way to a low carbon future. London: HM Government.

ONS. 2017. Nomis Labour Market Profile - York, North Yorkshire And East Riding. Accessed September 2017. https://www.nomisweb.co.uk/reports/lmp/lep/1925185568/report.aspx.

ONS. 2009. UK Standard Industrial Classification of Economic Activities 2007 (SIC 2007): Structure and explanatory notes. Basingstoke: Palgrave Macmillan.

REview. 2017. Renewable Energy View 2017: Anaerobic Digestion (AD) Biogas. http://r-e-a.net/upload/final_low_res_renewable_energy_view_-_review_2017.pdf.

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Royal Academy of Engineering. 2017. Sustainability of liquid biofuels. Royal Academy of Engineering.

Turley, D, G Evans, and L Nattrass. 2013. Use of sustainably-sourced residue and waste streams for advanced biofuel production in the European Union: rural economic impacts and potential for job creation. York: NNFCC.

Vivergo Fuels. 2017. Vivergo Fuels shutdown in response to legislative uncertainty. 4 December. Accessed June 2018. https://vivergofuels.com/news/vivergo-fuels-brings-forward-maintenance-shutdown-response-deteriorating-market-conditions-legislative-uncertainty/.

Vivergofuels. 2017. Bioethanol – A breath of fresh air! Accessed June 2018. https://vivergofuels.com/renewable-energy/bioethanol-a-breath-of-fresh-air/.

York, North Yorkshire and East Riding LEP. 2014. Strategic Economic Plan. York, North Yorkshire and East Riding Local Enterprise Partnership.

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