United Kingdom

In the United Kingdom, the main driver for use of bioenergy is their ambitious greenhouse gas emissions targets (Bauen 2005). They are calling for a 20% reduction by 2010 compared to 1990 levels. In order to meet this greenhouse gas target, the renewable energy target is 10% energy generation by 2010, of which 1/3 is expected to be from biomass.

To meet these targets, the UK has issued several policy directives including the Renewables Obligation and the Green Fuels Challenge. The Renewables Obligation requires electricity providers to use renewable energy sources to provide a fraction of their electricity, yet the buy-out price per kilowatt hour is not enough to stimulate development of the bioenergy industry, except in cases where low cost biomass waste is used for the fuel source (Bauen 2005). Likewise, the Green Fuels Challenge calls for a fuel duty rebate on biodiesel. The proposed tax reduction would make biodiesel produced from vegetable oil competitive with diesel, but would not make other biodiesel forms competitive.

Another program that has been introduced provides funding for the introduction of energy crops including short-rotation woody crops. This program, funded by the Department of Environment, Food, and Rural Affairs, provides incentives for start-up costs for establishing energy crops. It is estimated that approximately 14,280 acres of energy crops will be established with this program. The short-rotation crops would also be eligible for funding from the Forestry Commissions Woodland Grant Scheme (Bauen 2005).

While there are several initiatives for the development of bioenergy, there is no clear strategy for bioenergy promotion on a short or long-term basis. A clear strategy must be developed before bioenergy development can be truly successful (Bauen 2005).