The Renewable Transport Fuel Obligation (RTFO) is a governmental policy that focuses on reducing greenhouse gas (GHG) emissions by encouraging the supply of renewable fuels to increasingly replace fossil fuels, in road transport and non-road mobile machinery (NRMM)  by establishing legal requirements the percentage of road fuels should be derived from renewable sources. The RTFO promotes the UK alignment with the Renewable Energy Directive (RED II) biofuel targets for the European Union. This involves regularly updating the greenhouse gas saving thresholds required of renewable fuels, while ensuring that the regulation of the biofuel supplier’s sustainability criteria meets the required biofuel feedstock and land use standards (as applicable) to be deemed eligible for Renewable Transport Fuel Certificates (RTFC). Suppliers of road and NRMM fuel, including petrol, diesel, gas, oil, and renewable fuel, that exceeds 450,000 litres over an obligation period, must apply and register with the Department for Transport and comply with the RTFO.

Fuel suppliers are either eligible to redeem RTFC’s through their compliance with the RTFO standards following approval by the Department for Transport review of the independent assurance audit (conducted by envirosense®) that verifies carbon and sustainability data, or they must pay a fixed sum on each litre of fuel produced that is not aligned to the RTFC in order to buy-out of their obligation.

BIOFUELS AND THE RTFO

Biofuel must comply with the sustainability criteria of the RTFO. The criteria comprise of two elements of carbon and sustainability (referred to in the RTFO guidance as C&S data):

• Greenhouse gas criteria to meet thresholds (which are amended periodically)
• The land criteria (non-conversion of protected areas, biodiverse areas, peatlands)

HYDROGEN AND THE RTFO

Renewable Fuels of Non-Biological Origin (RFNBO) such as hydrogen attract additional RTFCs per kilogram (4.58 RTFCs per kg). Hydrogen and RFNBO have specific criteria to be met and greenhouse gas and land criteria information is not applicable. Biogenic energy (from wastes, residues or crops) is not permitted for energy generation purposes and for hydrogen to be eligible only non-biogenic renewable energy (solar, wind, wave, hydrothermal and tidal) energy is permitted to convert compounds to hydrogen.

VERIFICATION & ISAE ASSURANCE

RTFO-registered fuel suppliers require independent verification from a third party that can confirm whether the applicant and fuel supplier is eligible for the RTFO incentives. This involves the verification of carbon and sustainability criteria associated with the fuel. envirosense®, as an independent verifier conducts the biofuel supplier assessment against the International Standard on Assurance Engagements (ISAE 3000) as required by the RTFO legislation. Depending on your planned claims and sales of RTFCs, envirosense® can conduct the verification monthly, quarterly or annually.