Andrew Owens, Greenergy managing director, said he was delighted that the Government 'now recognises that renewable fuels are an important step on the road to zero or low carbon vehicles or fuel technologies and products'.
However, he added: 'There is more that can be done to stimulate this developing market and business opportunity.'
Greenergy claims its research into the benefits of biofuel blends for transport use confirm 'both the economic efficiency and environmental effectiveness of blends of biodiesel and ULSD produce substantially fewer key emissions than when biodiesel and ULSD are used as standalone products'.
Owens added: 'The test results were an important finding. If the UK Government is committed to reducing emissions from road transport, particularly those that contribute to global climate change, blends are an important transitional solution. Further market stimulation by the Chancellor would pave the way for significant market penetration of biodiesel blends.'
The Government said the move 'will allow the UK to benefit from the reduced greenhouse gas emissions that biodiesel can offer'.