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Ofgem launches biofuel consultation
The Office of Gas and Electricity Markets (Ofgem) has announced that it will be launching a consultation in biofuels in the UK.
With the consultation, the regulator aims to determine whether or not biofuel comes under the Renewables Obligation Order, which defines which fuels are officially treated as renewable sources.
Both biodiesel and glycerol are derived from methanol - which comes from a fossil fuel - so it is expected that they will not be included under the Order.
However, biofuels and glycerol extracted from biomass derived alcohols are classed as renewable, according to the legislation.
The impact this will have on producers is that they will soon have to prove that the biofuels or glycerol they are generating is not indirectly sourced from fossil fuels - which could require tracing substantial amounts of evidence.
Interested parties have until October 10th to express their views to Ofgem.
In other news, the Indian government announced recently that it planned for all of its fuel to be blended with biodiesel by 2017.
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