This Government is committed to improving the resilience of the UK's food system and supply chains in the face of environmental and geopolitical risks. With reference to the findings of the UK's National Security Assessment on global ecosystem degradation, Defra is supporting sustainable domestic production, strengthening supply chain resilience, and working with international partners to protect the ecosystems that underpin global food security and economic prosperity.

The Government launched a consultation on 18 November to explore alternative clean heating solutions that may play a role in some homes, including renewable liquid fuels (RLFs) such as hydrotreated vegetable oil.

The consultation will run until 10 February.

The government has published a consultation on alternative heating solutions which seeks to gather evidence on the role that these technologies, including renewable liquid fuels (RLFs) such as hydrotreated vegetable oil, could play in ensuring that every household has a low-carbon option that is right for them. The consultation will run until 10 February and can be found here: Exploring the role of alternative clean heating solutions - GOV.UK.

The Government launched a consultation on 18 November to explore alternative clean heating solutions that may play a role in some homes, including renewable liquid fuels (RLFs) such as hydrotreated vegetable oil. The consultation will run for 12 weeks.

The Government will review evidence from this consultation to help inform any future decision on whether or not to support the use of RLFs in heating.

Hydrotreated vegetable oil is a low carbon fuel made from oils and fats, which is used in rail or road transport.

Oils and fats are also used to make a type of sustainable aviation fuel (SAF) called HEFA or hydroprocessed esters and fatty acids. HEFA will play a vital role in our aviation decarbonisation journey. The UK is already producing and supplying this type of SAF, and we welcome the further development of this industry. The supply of HEFA SAF is incentivised by the UK’s SAF Mandate, which came into force this year. The SAF Mandate could deliver up to 6.3 megatonnes of carbon savings per year by 2040.

Project Willow – an independent feasibility study led by Ernst and Young and jointly funded by the UK and the Scottish Governments – evaluated over 300 technologies to identify those that could be effectively deployed in Grangemouth. This included options to produce hydrogenated vegetable oil products, such as sustainable aviation fuel and renewable diesel.

We are now ready to take these opportunities forward. Backed by £200 million from the National Wealth Fund, our UK and Scottish Government investment agencies are working together to find investors for clean energy proposals in the Grangemouth area.

The Global Environmental Impacts of Consumption Indicator, funded by Defra, estimates that UK-linked deforestation driven by soy and palm oil was 7-9 times and 15-20 times greater respectively than deforestation linked to sunflower and rapeseed oil in 2022.

We recognise the need to take action to ensure that UK consumption of forest risk commodities is not driving deforestation and we will set out our approach to addressing this in due course.

As sustainable biomass is a limited resource, the Government expects to prioritise its use in sectors like aviation which have fewest options to decarbonise. Renewable liquid heating fuels (RLHF) are also much more expensive to use than other heating solutions.

Before taking decisions on whether to support the use of RLHFs, like hydrotreated vegetable oil, in heating, the Government would require stronger evidence on their affordability for consumers, and the availability of sustainable feedstocks.

As sustainable biomass is a limited resource, the Government expects to prioritise its use in sectors like aviation, and potentially the small number of homes unsuitable for heat pumps, as these sectors have fewest options to decarbonise. The cost of renewable liquid heating fuels is currently much higher than other fuels available to off grid customers. Before taking decisions on whether to support the use of renewable liquid fuels, like hydrotreated vegetable oil, in heating, the Government would require stronger evidence on their affordability for consumers, and the availability of sustainable feedstocks.

As sustainable biomass is a limited resource, the Government expects to prioritise its use in sectors like aviation, and potentially the small number of homes unsuitable for heat pumps, as these sectors have fewest options to decarbonise. The cost of renewable liquid heating fuels is currently much higher than other fuels available to off grid customers. Before taking decisions on whether to support the use of renewable liquid fuels, like hydrotreated vegetable oil, in heating, the Government would require stronger evidence on their affordability for consumers, and the availability of sustainable feedstocks.

NHS Supply Chain has trialled hydrotreated vegetable oil (HVO) in its vehicles, and continues to assess HVO’s long-term viability as a fuel source for its network. A 2023 trial showed a 90% reduction in carbon emissions, though not other greenhouse gases, offered by HVO, although it also identified a 62% uplift in fuel costs. Whilst the National Health Service is committed to reducing reliance on fossil fuels across its operations, it will only roll out new measures where they are both fit-for-purpose and cost effective.

The Government has begun developing a consultation on the potential use of renewable liquid heating fuels and intends to issue the consultation later this year.

On 5 September 2023, during Parliamentary debates on the Energy Act, the Government committed to exploring the potential of renewable liquid fuels for heat by issuing a consultation within 12 months.

The Government has also taken powers in the Energy Act to impose obligations on heating fuel suppliers to increase the supply of renewable liquid heating fuels, should that be necessary.

Hydrotreated vegetable oil (HVO) is a relatively new fuel, and has limited availability in the UK. When used for domestic heating, HVO benefits from the rebated duty rate of 10.18p per litre, in contrast to the full duty rate of 52.95p per litre.

The Government’s Biomass Strategy, which was published on 10 August, reviews the amount of sustainable biomass available to the UK, including liquid biofuels such as HVO. It is important to ensure that biomass is prioritised within the economy where it offers the greatest opportunity to reduce greenhouse gas emissions in ‘hard to abate’ sectors where there are fewer options to decarbonise through alternative low carbon technologies. Biomass has a role in decarbonising certain properties, such as off gas grid homes that are not readily suitable for heat pumps. Further evidence is needed to consider what role biofuels could play.

As with all taxes, the Government keeps the taxation of HVO under review, and any changes are announced by the Chancellor at fiscal events.

The Government will issue a consultation on the potential use of renewable liquid heating fuels within twelve months.

Unipart Logistics completed a trial of HVO (Hydrotreated Vegetable Oil) on four vehicles for a period of 40 days across February and March 2023. Whilst this found a major reduction of 90% in carbon dioxide impact, the trial also found a 62% increase in fuel costs and highlighted the operational challenge of HVO not being available at fuel retailers. The results, and next steps, are currently being considered.

The National Health Service is committed to reducing its reliance on fossil fuels across its estate and will continue to explore new options and innovations

Unipart Logistics completed a trial of HVO (Hydrotreated Vegetable Oil) on four vehicles for a period of 40 days across February and March 2023. Whilst this found a major reduction of 90% in carbon dioxide impact, the trial also found a 62% increase in fuel costs and highlighted the operational challenge of HVO not being available at fuel retailers. The results are currently being considered.

The National Health Service is committed to reducing its reliance on fossil fuels across its estate and will continue to explore new options and innovations.

Hydrotreated Vegetable Oil is one type of biofuel that offers a lower carbon alternative to fossil diesel. As sustainable biomass is a limited resource, the Government will prioritise its use in sectors that offer the greatest opportunity to reduce emissions, and where there are fewest options to decarbonise through alternative low carbon technologies.