Dear Constituent,

Thank you for contacting me about the introduction of E10.

I share your belief in the importance of the bioethanol industry. Not only is it a source of jobs and growth for many, it is also integral to building a cleaner economy. It is also important however, to be sensitive to how the market responds to state intervention.

Recent changes to the Renewable Transport Fuel Obligation (RTFO) include an increase in the RTFO target for renewable fuels to 9.75 per cent of fuel supplied by 2020 and 12.4 per cent by 2032. This will provide investment certainty and increase incentives for new fuels. Increasing the renewable content of petrol by moving to E10 fuel should make achieving these targets easier and potentially more cost effective, as well as providing an economic boost to domestic producers.

The Government will work with industry to facilitate any future introduction of E10 petrol, to ensure that it is managed carefully and to ensure ongoing availability of fuel suitable for older (pre-2000) petrol vehicles.

Broader support for the bioethanol industry has also been made available. Last year the second Advanced Fuels Competition was launched. A Future Fuels for Flight and Freight Competition will invest £22 million in the development of advanced low carbon fuels.

Thank you again for taking the time to contact me.

Yours,

EDWARD LEIGH MP