THE 40 million red diesel replacement competition announced by the UK Government on 17 August aims to accelerate the commercialisation of low carbon red diesel alternatives, and in part recognises the challenges associated with the loss of exemption for red diesel.
However, the competition is limited to the construction, mining and quarrying sectors with the waste and resources sector excluded.
Why is this? The challenges the sector faces are equal to those being faced by other sectors as highlighted in the recent RMAS Removal of Red Diesel Entitlement Impact Report. This report highlighted that many RMAS members have considered shifting to alternative fuels. However, for most mobile static and process plant and equipment, options to switch to alternative fuels are extremely limited and still several years away. This is primarily due to the lack of viable alternatives which meet the power, torque and operating time requirements associated with managing heavy loads of waste and recycling.
Brian Ritchie Chair of the RMAS and Director of David Ritchie & Sons said: “The RMAS is calling for this competition to be extended to the Resource and Waste Management Sector – we as a sector will be significantly impacted when the loss of entitlement comes into force with running costs expected to double.
“This recent exclusion will also further impact on our sector’s ability to remain competitive in an already challenging marketplace – where is the level playing field?”
Other sectors including the agricultural and fisheries are exempt from the loss of entitlement, and now these further three sectors will be supported via this red diesel replacement competition.