Written evidence submitted by Prodrive (FTF0067)

Executive Summary

• Prodrive is a business founded in 1984 by David Richards CBE that started in motorsport, winning numerous championships across a wide range of motorsport disciplines and eventually branching out into alternative technologies to support multiple industries.
• The UK should continue leading by example and motorsport provides a great opportunity to showcase various alternative technologies and fuels .
• Over the last 12 months, Prodrive partnered with Coryton, a leading fuel supplier of bespoke fuels to develop a sustainable fuel for the most challenging motorsport event in the world, the Dakar Rally, and our cars finished 2nd and 4th  with a net saving of 80% on CO2 emissions.
• At the end of 2020, there were 32 million cars licensed in the UK (31 million on petrol or diesel) which made up 61% of the emissions from road transport (68 MtCO2e)
• To reduce emissions, the current UK Government’s policy is to ban the sale of all new conventional petrol and diesel cars and vans in 2030 and for all new cars to be zero emission at the tailpipe by 2035.
• However, a single solution policy suppresses innovation that might find better or complementary ones and people are beginning to understand that immediate action is required and we cannot wait for the perfect single solution to improve emissions.
• The existing cars have an average lifespan of more than a decade and it will take several years for the newer, cleaner models to work their way through the fleet.
• The critical question is how do we create a level playing field and provide an immediate cost-effective solution that can be developed in parallel to EV’s and promising technologies.
• E10 Petrol was introduced in September 2021, however, we are limited to the amount of bioethanol we can use in such fuels before there is a compatibility issue as shown with the 500,000+ cars that are currently incompatible.
• We believe a policy approach with incentives for affordable alternative fuels such as second-generation biofuels or synthetic fuels will help to immediately reduce greenhouse gas emissions by more than 80% and even a staged introduction could remove 14 Mtoe of CO2 (20% of road emissions by cars).
• The total estimated net biomass that can be used for biofuel production in the EU has been estimated at 126-262 Mtoe for 2030 and 101 – 252 Mtoe for 2050. This corresponds to waste-based biofuel production of 46 – 97 Mtoe for 2030 and 71 – 176 Mtoe for 2050.
• In 2019, the UK used 17 Mtoe in petrol and diesel or 47 billion litres indicating that there is an adequate availability of biofuels.
• Synthetic fuels are being produced in countries such as Chile with plentiful renewable energy sources and companies such as Porsche plan to produce 550 million litres by 2026.
• There is a unique opportunity to bring about instant savings of CO2 emission whilst we explore the potentials of EV’s and hydrogen for the future fleet.
• To maximise the utility of the UK’s existing transport stock, while meeting its climate-change commitments, we recommend:
• A cohesive long-term policy regarding all forms of sustainable renewable fuels that provides tax incentives for fuels which can act as a long-lasting bridge to encourage production of sustainable fuel in the huge volumes needed for multiple industries.
• Collaborating with organisations such as the Zemo to vet renewable fuel suppliers.
• Collaborating with motorsport organisations to use the industry to showcase second-generation biofuels and synthetic fuels and inspire their use in public.

About Prodrive

• Prodrive is a business founded in 1984 by David Richards CBE that started in motorsport, winning numerous championships across a wide range of motorsport disciplines and eventually branching out into alternative technologies to support multiple industries.

• Over the last 12 months we have been experimenting with alternative fuels, working with Coryton, a leading fuel supplier of bespoke fuels in Essex. Through this partnership, we have developed the fuels for high performance engines and recently competed in the Dakar Rally in Saudi Arabia. This is regarded as the most challenging motorsport event in the world and our cars finished second and fourth, utilising a sustainable fuel, ECOpower, and gained a net saving of 80% on CO2 emissions.

• We firmly believe that motorsport provides a great opportunity to showcase various alternative technologies and fuels. To further this mission beyond biofuels, we are exploring synthetic fuels and hydrogen where we are currently developing a hydrogen fuel cell car to compete at Le Mans in 2025.

About Alternative Fuels

• Second-Generation Biofuels (also known as advanced biofuels): These are manufactured using biogenic waste such as lignocellulosic biomass or woody crops, agricultural residues or waste, as well as dedicated non-food energy crops grown on marginal land unsuitable for food production. This waste is used rather than primary crops (as in first-generation biofuels) to overcome concerns surrounding food security.
• Synthetic Fuels (also known as e-fuels): These are emerging drop-in fuels that have the same properties as fossil-based liquid fuels but are artificially produced. They are made by storing energy from renewable sources in the chemical bonds of liquid or gas fuels aiming to be a carbon-neutral fuel. The core distinguishing factor from other liquid fuels is e-fuels do not require the use of agriculture. E-fuels are a special version of synthetic fuels that use renewable electricity to generate the hydrogen.

Scope

• This submission will predominately focus on opportunities and limitations surrounding future road connectivity, with an emphasis on 2nd generation biofuels and synthetic fuels. It should be noted that our view is that second-generation biofuels and synthetic fuels are not in competition with the electrification route. We believe having this additional pathway available will assure a more robust approach to reach net-zero by 2050.

1. The effect of Government fuel policy on future road, rail, air and maritime connectivity; and
2. Whether and how the Government is ‘technology neutral’ in its regulation and assessment of alternative fuels, and how its policies on alternative fuels influence investment, research, development and production

• In 2019, transport produced 27% of the UK’s total emissions. Of this, the majority (91%) came from road transport vehicles (111 MtCO2e). The biggest contributors to this were cars and taxis, which made up 61% of the emissions from road transport (68 MtCO2e), followed by Heavy Goods Vehicles (HGVs) (18% of road transport emissions, 19.5 MtCO2e) and vans (17% of emissions, 19 MtCO2e).

• At the end of 2020, there were 32 million cars licensed in the UK - 19 million were petrol powered (the vast majority), 12 million were diesel powered and 1 million alternatively-fuelled. The majority of the general fleet continues to produce as many emissions as in 1990.

• E10 petrol was introduced in September 2021, however, we are limited to the amount of bioethanol we can use in such fuels before there is a compatibility issue as shown with the 500,000+ cars that are currently incompatible.

• The UK Government’s current policy is to ban the sale of all new conventional petrol and diesel cars and vans in 2030 and a commitment for all new cars to be zero emission at the tailpipe by 2035. A single solution policy suppresses innovation that might find better or complementary ones. People are beginning to understand that immediate action is required and we cannot wait for the perfect single solution to improve emissions.

• The critical question is how do we create a level playing field for consumers and provide an immediate cost-effective solution that can be developed in parallel to battery electric vehicles and other promising technologies.

• The average lifespan of cars is more than a decade and it will take several years for the newer, cleaner models to work their way through the fleet.

• Additionally, our experience with renewable technologies as competitors (i.e. Extreme and Dakar Rally) and research in energy-intensive industries such as motorsport and aviation reveal certain areas of the transport sector cannot be electrified yet as liquid fuels contain 60 to 100 times more energy per mass than lithium-ion batteries. Therefore, in some applications, batteries are simply too heavy and bulky. For this reason, a significant proportion of the sector will continue to rely on liquid fuels to fulfil the energy demands, hence, numerous companies, associations and experts are advocating for alternative fuels.

• It should also be noted that policy encouraging the adoption of sustainable fuels will have a domino effect on other modes of transport and industries (HGV’s, chemical, aviation etc.).

• We believe a policy approach with incentives for affordable alternative fuels such as second-generation biofuels or synthetic fuels will help to immediately reduce greenhouse gas emissions in particular applications by more than 80 percent by fully replacing their fossil-based equivalent. According to Quadrant Transport, a staged introduction could remove 14 million tonnes of CO2 in UK by 2030 from the 32 million cars – almost the same amount as 4 coal-fired power stations would produce in a year. 

• Therefore, the Government fuel policy has a unique opportunity to be more ambitious in the short-to-medium term by moving beyond E10 and bridging the gap with readily available ‘drop-in’ fuels.

• The benefits of the policies will be immediate within the transport sector. They will provide incentives for R&D for second-generation biofuels (particularly into maximising different waste feedstocks) and synthetic fuels to explore how they can produced in increasing quantities.  Manufacturers, partner companies and fuel suppliers will have the confidence to develop plants. As a result of the increased supply, the cost differential of 14p/litre for biofuels (in this case, crop ethanol) can be minimised. Lastly, the UK should continue leading by example as well as foster multilateral rule-based cooperation and these policies will ensure it is well positioned for the geopolitical and geo-economic shifts inherent in the low carbon transition.

3. The infrastructure required to develop, produce, store and dispense alternative fuels

• The infrastructure already exists to develop, produce, store and dispense second-generation biofuels and synthetic fuels for light-duty vehicles. In the instance of these drop-in fuels, we can use the existing refuelling network for light duty vehicles.

• According to an independent analysis into the Sustainable biomass availability in the EU by researchers at Imperial College London, the total estimated net biomass that can be used for biofuel production in the EU for transport has been estimated at 126-262 Mtoe for 2030 and 101 – 252 Mtoe for 2050. This corresponds to waste-based biofuel production of 46 – 97 Mtoe for 2030 and 71 – 176 Mtoe for 2050.

• In 2019, the UK used 17 Mtoe in petrol and diesel or 47 billion litres indicating that there could be enough to cover second generation biofuels to address the demand.

• At present, these drop-in fuels are produced in limited quantities, particularly for synthetic fuels as it requires plentiful renewable energy for sustainable production.

• In the case of second-generation biofuels, as aforementioned, the biomass feedstock could start to fulfil some of the demands of the transport sector. According to studies, based on raw material supply potentials, the UK could develop 97 key biorefineries for second generation biofuels. 88,000 jobs and revenue greater than of £3bn.

• Whilst enlarging the feedstock base and developing processing technologies for a wider range of feedstocks and increasing the efficiency of conversion to valuable biofuels and other products, the fuels could be used in a limited capacity and available for the motor racing tracks across the UK to showcase and inspire their use in public.

• Synthetic fuels are being produced in countries such as Chile with plentiful renewable energy sources and Porsche plan to produce 55 million litres by 2024 and 550 million litres by 2026.

• The biomass conversion technologies and supply chains and would need to be developed to mobilise all these resources and progress towards market deployment.

4. Steps that the Government could take to maximise the utility of the UK’s existing transport stock, while meeting its climate-change commitments

• There is a unique opportunity to bring about instant savings of CO2 emission whilst we explore the potentials of EV’s and hydrogen for the future fleet.

• To maximise the utility of the UK’s existing transport stock, while meeting its climate-change commitments, we recommend:
• A cohesive long-term policy regarding all forms of sustainable renewable fuels (with a particular focus on secondary biofuels and synthetic fuels) that provides tax incentives for the fuels which can act as a long-lasting bridge to encourage production of sustainable fuel in the huge volumes needed for multiple industries.
• Collaborating with organisations such as the Zemo to access renewable fuel suppliers and boost uptake of renewable fuels.
• Collaborating with motorsport organisations to use the industry to showcase second-generation biofuels and synthetic fuels and inspire their use in public.
• Promote a sustainable bio-economy, diversify agriculture, animal farming, aquaculture and forestry production, further increasing productivity while also adapting to climate change itself.
• A biomass-based transition is limited by the availability of land. Therefore, the UK government could explore partnering with nations with land that can be used for non-food energy crops to increase security of supply.
• Expand on the 'polluter-pays' model to support the phasing out of existing fossil fuel subsidies in line with the G20 commitments.

5. The contribution that alternative fuels could make to sustainability, transport decarbonisation and connectivity.

• Before electric cars become ubiquitous, we want to take advantage of reduced CO2 emissions today. As aforementioned, alternative fuels could lead to an immediate net saving of 80%+ on CO2 emissions.

• Motorsport is well positioned to lead the way to help drive more general market awareness about these alternative fuels, how well they work and the impact they could have here and now in reducing greenhouse gas emissions.

• Decrease the UK’s exposure to the volatility of global oil prices through ramping up home-grown production.

• If the Government does not take this opportunity, then the resulting negative effect on their targets and delivery will be significant and may take those targets beyond reach without a devastating effect on the UK.

• According to studies, based on raw material supply potentials, the UK could develop 97 key biorefineries for second generation biofuels. 88,000 jobs and revenue greater than of £3bn.