Tesco to sell rapeseed biodiesel
Fri April 30, 2004 08:12 AM ET

LONDON (Reuters) - Tesco is to make biodiesel made with rapeseed available at more than 20 of its forecourts in the southeast of England in the next few weeks after a successful two-month pilot of the green fuel, a spokesman says.
The retailer said that drivers could switch from their normal diesel to 'GlobalDiesel' -- made by UK independent Greenergy -- without having to make any changes to the engine or oil. The new fuel has five percent less carbon emissions, it said.

Tesco said GlobalDiesel, a blend of 95 percent ultra low sulphur diesel and five percent biodiesel produced from rapeseed, would cost "one or two pence" more than regular diesel, which currently retails at around 79 pence per litre.

Greenergy and its European partner Novaol this month unveiled plans to build Britain's first biodiesel plant to process up to 100,000 tonnes of home-grown virgin rapeseed oil a year.

Earlier this week, the government launched a 12-week consultation aimed at agreeing a minimum sales target for biofuel from 2005 and deciding whether a "renewable transport fuels obligation" -- a move that would force fuel makers to include biofuels in their annual sales -- should be introduced.

Last month, the government left its duty rebate for biodiesel unchanged at 20 pence per litre in its annual budget statement, disappointing farmers who wanted a bigger tax break to boost demand for the green fuel.

UK biodiesel sales in 2003 amounted to 19 million litres, according to recent official government data, about half of which was imported.
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Source: Reuters.co.uk