Links to the report are on the right hand of the screen and are in PDF format

Today sees the publication of the report on a study undertaken by the Scottish Agricultural College (SAC) Consultancy Division on the potential for a Biodiesel industry in the north and east scotland.

The report was commissioned by a partnership comprising Aberdeenshire Council, Angus Council, Fife Council, Highland Council, Highlands & Islands Enterprise and Scottish Enterprise Energy. A main aim of the study is to identify the means of optimising the value of the oilseed rape (OSR) crop to growers in the study area, which produces around 75% of the OSR grown in Scotland.

CAP reform has decoupled subsidies from production and farmers are now more exposed to market prices, which in the cereal sector have shown marked decline in the last decade. While oilseed rape has been a useful break-crop within the rotation, comparison of net margins between cereals and oilseeds are altering due to world market prices and growing demand for oilseeds for the biofuels industry.

The report identifies a number of key issues, which require to be addressed before any production infrastructure could be developed with confidence and the partners are inviting feedback from stakeholders over the next three months. The study is expected to stimulate extensive discussion in the agricultural, fuel and associated industry sectors, particularly as Scotland has potential to produce oilseeds with a high oil content, but farmers lose significant value of their crop due to the transport costs to processing plants in England or overseas.

The report titled "The Economic Evaluation of Bio diesel Production from Oilseed Rape Grown in North and East scotland" can be obtained from the links on the right or from the Consultants at  SAC Craibstone Estate, Aberdeen, or any of the partner websites.

Commenting on the report's publication councillor Bob Wilson chair of the Environmental Services Committee and of the Renewable energy Working Party shared the view of the partners, "The council is fully aware of the importance of a profitable sustainable agricultural sector and as we move towards a more market-orientated production system, it is vital that the industry responds to market forces.

Renewables are very much part of our future strategy to meet energy requirements. In North East we have a significant resource through biomass and biofuels potential, to contribute to ever-increasing demands for energy. biofuels  have and important role to play in meeting our renwable targets.

While one soloution will not meet all requirements, the potential for biodiesel must be given due recognition in tandem with other renewable technologies and we must look at how these emerging industries can be developed.