What is it Renewable Transport Fuel Obligation?

The RTFO scheme has been developed by the UK government under the EU’s Renewable Energy Directive to support the development of renewable transport fuels and reduce emissions.

The obligation is placed on suppliers of road transport fuels, who trade in excess of 450,000 litres per annum. This obligation requires suppliers to source a percentage of this fuel from sustainable biofuel. Recent reforms to the scheme will obligate fuel suppliers to provide 9.75% of all fuels from renewable sources by 2020, a doubling of the current 4.75% obligation that will then rise to 12.4% of all fuels by 2032.

How can we help?

Producers of sustainable biofuels will, as part of this scheme, be in receipt of Renewable Transport Fuel Certificates (RTFCs). The RTFCs, which are issued to producers, will either be used these to meet their own compliance or traded on the market.

If suppliers fail to produce enough biofuel to generate RTFCs or fail to purchase adequate RTFCs to meet their obligation, they will instead pay a buy-out price, which is based on their original compliance.

To ensure our clients achieve the highest market value, we aggregate clients RTFCs and bring them to market. We don’t use RTFCs for any compliance of our own, so we use our independent position and trading skill to extract leading market value.

Our Energy Trading Team
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