North East Nova Pangaea firm urges biofuel investment boost

Stewart Stewart, CEO of Nova Pangaea, says that agricultural and forestry waste alone could produce enough fuel for over half of our aviation needs, with other sources making up the balance.

Biofuels would also provide additional income for farmers and create new jobs in areas such as Teesside.

However, he warns that the UK’s fledgling biofuel industry is at a critical point in its development.

While new technologies offer potential to unlock new feedstocks, the companies behind them now need to attract investment and scale up production to secure the future of the industry.

Mr Stewart says: “In the light of the Iran war, energy security is now a top priority.

“We need to reduce our dependence on imported oil.

“Over half of the UK’s electricity already comes from renewables; however, transportation – and in particular aviation, shipping and heavy-duty vehicles – still depends on liquid fuels.

“North Sea oil production will not be enough to satisfy demand, nor will it supply us with aviation fuel or shield us from oil price shocks.

“Producing biofuels in the UK from waste materials is a key part of the solution – and the fact they are sustainable is a bonus.”

Biofuels already account for up to 10% of standard petrol and up to 7% of diesel.

Under UK and EU rules, they will also make up an increasing proportion of aviation fuel – rising from 2 per cent in 2025 to as much as 70 per cent in 2050.

Currently, almost all sustainable aviation fuel (SAF) comes from used cooking oil, of which roughly 80 per cent is imported from China and South-East Asia.

Waste oils alone will not be enough to meet future demand.

However, new technologies enable it to be produced from other feedstocks which are more widely available.

Nova Pangaea’s process uses waste biomass such as wheat straw or wood chips to produce SAF.

According to figures from the International Air Transport Association (IATA), in 2030 there will be enough waste biomass available in Europe, including the UK, to produce around 30 million tonnes of SAF, equivalent to over half of aviation fuel demand.

Nova Pangaea, which has a demonstration plant at Wilton, Teesside and is partnered with British Airways’ parent IAG, is now looking to set up production plants.

Meanwhile, other companies are pioneering different technologies that use waste materials or captured CO2 and green hydrogen.

Stewart adds: “Biofuels could help end our dependence on imported fossil fuels, but we need to beware falling into the same trap and relying solely on imports.

“There is a golden opportunity for the UK to become a leader in biofuels technology and build its own domestic industry.

“The UK has the technologies, but we now need to secure investment for new plants and put them into production.

“As we scale up production, we will bring down costs.

“The next few years will be pivotal for this nascent industry and the support of policymakers and investors will be critical.

“But if we succeed, we will create a more resilient and affor.”