Fleet News

Hydrogen's future assured

CHANCELLOR of the Exchequer Gordon Brown has placed hydrogen fuels at the centre of the Government's future policy on fuel which will be backed up with major tax incentives for 'green' fleets. The announcement gives fleets the clearest indication yet of future Government policy on fuels.

Sources say incentives could include slashing taxation on hydrogen fuel to lower levels than the current rate for liquefied petroleum gas and compressed natural gas. A spokesman for the Department of the Environment, Transport and the Regions confirmed that hydrogen would be the cornerstone of future fuel policy and added: 'The Government's commitment to delivering both air quality and climate change benefits through increased use of more environmentally-friendly alternative fuels in the UK supports early steps towards a hydrogen-based economy.'

The Government is planning a consultation exercise in the summer on how best to develop alternative fuels, although a date for its launch has yet to be set, with the DETR spokeswoman adding: 'The Government will be supporting research and development and new technologies with tax incentives.' The Department of Trade and Industry has already announced it is making £55.5 million available for research and development into alternative fuels, including bio-fuels and fuel cells.

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