Benefits : Tax concessions
The technology to produce BioDiesel has been around for many years and the inventor of the diesel engine, Rudolf Diesel, originally ran his engine on vegetable oil. However the BioDiesel industry is still in its infancy in the UK so the cost of production is expensive when compared to mineral oil.
The economics of supply and demand has created this situation, but mineral oil is a finite resource and reserves will not last forever, whereas vegetable oil crops are renewable.
So it is essential for the government to maintain current BioDiesel tax concessions so that the fuel can compete in the current market and production can expand to economically viable levels.
