14.05.13
GBRf calls for biomass access charge to be scrapped
A proposed biomass access charge for rail freight must be dropped, GB Railfreight (GBRf) has urged.
The Commons Select Committee for Energy and Climate Change has proposed a charge to be introduced from April 2014, which could add between £1 and £1.50 per tonne to the price of biomass.
In its submission of evidence, GBRf warns that rail is the only viable means of transport for the fuel and a secure rail freight market is necessary to transport biomass to power stations and to help the UK meet its carbon reduction targets.
A decision on access charges should wait until the market has matured, which GBRf estimates could take at least ten years. Introducing charges now could jeopardise proposed conversion projects.
The DfT, ORR and DECC should coordinate policies to ensure an inter-relationship between biomass subsidies, renewable policies and any potential charges. Strategic freight network funding should be focused on improving the connection of corridors between deep water-ports and power stations ready to convert to biomass.
John Smith, GBRf’s managing director, “GBRf welcomes this inquiry as a means to consider what conditions are needed in order to best support the growth of the biomass sector. GBRf strongly believes the biomass industry can only be as strong as its supply chain.
“But current Government policy on electricity markets is unclear and is leading to reluctance by investors to lend to rail freight operators hoping to enter the biomass supply chain. Therefore the ability of the private sector to make the necessary substantial investment in the biomass supply chain is limited.”
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