Biofuels

Under the Energy (Biofuel Obligation and Miscellaneous Provisions) Act 2010 amending the National Oil Reserves Act 2007 and implementing the Renewables Directive 2009/28, oil companies and certain large oil consumers must ensure that a specified amount of the petroleum product that they dispose of, by sale or otherwise, is biofuel. This is fixed by ministerial order,  or in default 4.166 per cent.

Biofuel obligation certificates are administered by the National Oil Reserves Agency. Certificates are granted to biofuels which have complied with the sustainability criteria for biofuels set out in the Renewables Directive. This If the  biofuel obligation is not met, the  party must pay the agency a “buy-out charge” equal to the amount of the unmet obligation multiplied by the price per litre of the biofuel, which is set by ministerial regulation. The objective was to have 10 per cent biofuel market penetration by 2020.