What is the RTFO?
The Renewables Transport Fuel Obligation (RTFO) is a UK policy that mandates fuel suppliers, who provide more than 450,000 litres of relevant fuel, to ensure a specified percentage of the transport fuels they supply come from renewable sources.
Obligated suppliers can fulfil their obligation by redeeming Renewable Transport Fuel Certificates (RTFCs) or by paying a fixed buy-out price for each litre of fuel they choose to “buy-out” of their obligation. RTFCs are earned by supplying eligible renewable fuels. Suppliers wishing to apply for RTFCs must have an account with the RTFO Administrator.
Summary of the RTFO Process
Eligible fuel feedstock types
Eligible fuels supplied under the RTFO can be made from any of the following feedstock types:
- Products of biological origin, which include relevant crops and energy crops.
- Wastes and residues of biological origin
- Renewable fuels of non-biological origin (RFNBOs)
- Recycled Carbon Fuels (RCFs)
Eligible fuels derived from feedstocks from 1 or 2 above are classified as biofuels, while those produced from non-biomass renewable sources are categorized as RFNBOs. Fuels made from designated fossil-origin wastes are classified as RCFs.
Relevant crops
Relevant crop feedstocks are defined as starch-rich crops, sugars, oil crops and main crops, where “starch-rich crops” include:
- cereals (grain/whole crop)
- tubers and root crops, including potatoes, sweet potatoes, cassava and yams
- corm crops, including taro and cocoyam
Energy crops
Dedicated energy crops are crops that consist of non-food cellulosic material or lignocellulosic material, except saw logs and veneer logs, which:
- are grown for the purpose of being used as fuel or energy
- are not a residue or a waste
- would not normally be used for food or feed
Wastes and residues
Waste – any substance or object which the holder discards or intends/is required to discard. Excludes substances that have been intentionally modified or contaminated for the purpose of transforming into a waste.
Processing residue – refers to a substance that is not the intended end product of the process, is not the primary objective of the process, and for which the process has not been specifically modified to produce i.e. spent wheat grains
An in-depth breakdown of specific eligible Wastes and Residues can be found here:
RTFO list of feedstocks including wastes and residues – GOV.UK
Renewable fuels of non-biological origin (RFNBOs)
RFNBOs are renewable liquid or gaseous transport fuels whose energy content does not derive from biological sources. These fuels are considered renewable when their energy comes from renewable energy sources other than bioenergy. This means that RFNBOs can be produced using electricity and/or heat generated from sources such as wind, solar. However, RFNBOs cannot be made from bioenergy sources, meaning they cannot be derived from biomass, landfill gas etc.
Recycled Carbon Fuels (RCFs)
For fuel to be defined as an RCF under the RTFO Order, the fuel must be:
- made from a fossil waste which cannot be recycled, reused or prevented, and which has been designated as a relevant feedstock following the process and criteria outlined in Chapter 2 of the RTFO RCF Guidance
Additional Literature
If you want to find out more information about the RTFO then please see the following links to relevant literature:
- Renewable Transport Fuel Obligation: Compliance Guidance
- The Renewable Transport Fuel Obligation – an essential guide
- RFTO Biomethane Guidance 2023
- RTFO Guidance for Renewable Fuels of Non-Biological Origin
- RTFO guidance: recycled carbon fuels
Please also see a previous blog post on our website – The RTFO Explained – Action Renewables
Our Services
For expert assistance with the RTFO process or support with trading RTFCs, please reach out to our Large-Scale Team
References
Department for Transport (DfT) (2024), RTFO Guidance for Recycled Carbon Fuels, GOV.UK.
Department for Transport (DfT) (2024) RTFO list of feedstocks including wastes and residues, GOV.UK.
Author: Conor McVerry