News >>> Fuel duty change boosts fuel cell business case compared to diesel
Changes to taxes on diesel are expected to drive home the economic case for fuel cells in the construction sector. Add in that fuel cells are clean, quiet and efficient and the business case is compelling.
Posted March 2020
An end to fuel duty relief on the red diesel commonly used in the construction industry is expected to see a surge in usage of fuel cell generators. Chancellor Rishi Sunak declared an end to the tax relief for the construction sector in the latest UK budget, giving a two-year grace period to April 2022 before the change takes effect.
Noting that the red diesel scheme currently allows selected users to pay duty of just over 11p per litre for diesel, compared to almost 58p per litre for everyone else, Sunak stated the current regime amounts to a £2.4 billion tax break on nearly 14 million tonnes of carbon dioxide emissions every year. He described red diesel as “a £2.4 billion tax break for pollution that’s also hindered the development of cleaner alternatives”.
Recognising the environmental impact of the current regime, changes to the duty rates are expected to add up to a major boost for fuel cell technologies. A clean, quiet and efficient alternative to current internal combustion engine systems for on-site power, some fuel cells – such as the Adelan mSOFC design – offer a direct replacement running on LPG. Without the tax breaks for diesel, fuel cells make an economically attractive solution too.
Commenting on the development, Adelan CEO Dr Michaela Kendall said: “With their low emissions, silent operation and ability to use plug in fuels, hydrogen-ready fuel cells already make a compelling argument when it comes to environmental impact. With the tax system now starting to emphasise these benefits – and the playing field levelled – the economic case for fuel cells is unassailable too.”
To discover more about how Adelan can support your future energy ambitions or to meet your requirements for clean, quiet and reliable energy for remote, mobile or any other applications, please contact Dr Kendall and the rest of the Adelan team at:
Adelan Ltd, 15 Weekin Works, 112-116 Park Hill Road, Birmingham, B17 9HD (UK)
Tel: +44 (0)121 427 8033
First founded in The Midlands, Birmingham-based Adelan pioneered microtubular solid oxide fuel cell (mSOFC) technology more than 30 years ago. Adelan’s patented and scalable technology gives the fuel cell unprecedented flexibility, allowing the system to run cleanly on a range of commonly available fuels such as LPG, natural gas or propane/butane mix. As a result, though Adelan fuel cells can also run on hydrogen, they offer considerable additional operational flexibility and ease of use benefits whilst retaining a small, compact and lightweight footprint.
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