Lord Berkeley (Lab)

My Lords, I support this amendment, which we discussed at some length in Committee. The amendments then, which other noble Lords supported, covered the relationship between the sustainable aviation fuel used for aeroplanes and the same fuel used for home heating. I declare an interest as having a boiler in Cornwall that survives very well on home heating. Interestingly, sustainable aviation fuel produced through the HEFA process generates hydrotreated vegetable oil as a by-product. HVO accounts for approximately 30% of the output, a significant amount that should not be overlooked. HVO can play an essential role in helping to decarbonise the 1.7 million oil-heated households that are off the gas grid. Otherwise they use electricity, which is expensive. Last month, we had a delegation from the village of Kehelland in Cornwall who have all been trying out HVO in their houses for about three years. They travelled, leaving at 2 am, to meet the Minister at DESNZ to present their response to the consultation that we discussed earlier—a 500-mile round trip shows they are pretty committed. But what is interesting is that, in describing their experience of using the fuel, they highlighted how renewable liquid fuels can cut emissions from home heating by up to 88% compared with kerosene—88% is a figure worth having. They work simply as a drop-in replacement. The Government’s consultation said that, of all those considered, this was the most cost-effective option for off-grid consumers. However, the consultation still questions the feedstock availability for the fuel, which we discussed in earlier amendments today. It is puzzling that the DfT is confident that there is more than enough feedstock to boost SAF production by 22%. The research done by the industry, the EU Commission and the Irish Government indicates that there is enough feedstock—again, we have discussed that at length. I was pleased to welcome the Government’s confirmation in a Written Answer that the targets under the SAF and RTFO mandates “are set considering global availability of feedstocks and competing demands between transport modes and across sectors of the economy”. That seems to highlight that there is enough material for both aviation and home heating, so it would be a great shame if we pitted one sector against the other, rather than try to have a bit more of what you might call cohabitation in-between. To incentivise HVO production, I believe a renewable liquid heating fuel obligation needs to be implemented—that is the solution—triggered under Section 159 of the Energy Act. That would create the necessary market mechanism, in a similar way to the SAF mandate and the RTFO, to give certainty to the industry to distribute HVO to households at an affordable price. I hope that I can persuade my noble friend when he responds to try to ensure that his department, the Department for Transport, and DESNZ are working hand in hand to ensure that we can scale up the production of sustainable aviation fuel to capture the benefits of HVO for home heating. I must not keep asking him for meetings every day, but, if he would accept, it would be very nice to have a meeting with him and our colleague the noble Lord, Lord Whitehead, the Minister for Energy Security, to discuss the benefits of this approach. The consultation closes today, so it seems to be the right time to meet.