BEIS have provided a response to the REA with information on the Red Diesel Replacement Competition. The full response can be found below. The REA would draw attention to the other forms of support available for the waste and recycling sector, at the bottom of the response.

“The Red Diesel Replacement competition prioritised the construction, mining & quarrying sectors based on the findings from a study commissioned by BEIS in late 2020 which found these sectors to account for 63% of the total red diesel UK consumption and as having a medium-to-high ability to pass on costs to the customer. The competition is constrained by time (completion by 31 March 2025) and budget (£40m), thus BEIS had to define the scope tightly and selected the largest red diesel users, namely constructing, mining & quarrying.

Acknowledging the scoping limitation, one of the objectives of the competition is to maximise the opportunities for cross-over of technologies and solutions identified through this competition into other industrial sectors, such as the waste and recycling sector. BEIS are planning a series of dissemination events in the future to share the learnings with industry and will keep the relevant policy teams informed to help shape the development of low carbon alternatives for these sectors.

Aside from this competition, other forms of support for the waste and recycling sector can be found as part of the Industrial Fuel Switching competition, the Industrial Energy Efficiency Accelerator, the Industry of Future programme and the Industrial Energy Transformation Fund.”

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