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Biofuels: ‘Irrational’ and ‘Worse than Nonrenewable Fuel Source’

Biofuels: ‘Irrational’ and ‘even worse than fossil fuels’

The UK’s “illogical” usage of biofuels will cost motorists around ₤ 460 million over the next 12 months, a think tank says.

A report by Chatham House, external says the growing reliance on sustainable liquid fuels will also increase food costs.

The author states that biodiesel made from grease was even worse for the environment than fossil fuels.

Under EU law, external, biofuels are set to comprise 5% of the UK’s transport fuel from today.

Since 2008, the UK has needed fuel providers to add a growing proportion of sustainable materials into the petrol and diesel they supply. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research performed for Chatham House says that reaching the 5% level indicates that UK vehicle drivers will have to pay an extra ₤ 460m a year due to the fact that of the higher expense of fuel at the pump and from filling regularly as biofuels have a lower energy content.

The report say that if the UK is to meet its commitments to EU energy targets the expense to drivers is most likely to rise to ₤ 1.3 bn per annum by 2020.

“It is hard to discover any great news,” Rob Bailey, senior research fellow at Chatham House, told BBC News.

“Biofuels increase costs and they are a very expensive method to decrease carbon emissions,” he stated.

The EU biofuel mandates are also having extremely distorting impacts in the market. Because utilized cooking oil is regarded as one of the most sustainable kinds of biodiesel, the price for it has increased quickly. Rob Bailey states that towards the end of 2012 it was more expensive than refined palm oil.

“It creates a financial incentive to buy refined palm oil, prepare a chip in it to turn it into utilized cooking oil and then offer it at profit,”

“It is crazy but the rewards are there.”

There are also frets that taking EU land out of production to oil in specific is developing more environment issues than it resolves. The more fuel of this type that is put into automobiles the bigger the deficit created in the edible oils market. This had actually resulted in increased imports of palm oil from Indonesia, frequently produced on deforested land.

“Once you take into consideration these indirect impacts, biofuels made from vegetable oils in fact result worldwide in more emissions than you would obtain from using diesel in the first place,” said Rob Bailey.

“Plus you are asking vehicle drivers to pay more for the fuel – it makes no sense, it is a totally unreasonable method.”

Biofuel benefits

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, said it understood the issues triggered by the mandate. But it believes that biofuels have numerous positives.

“Blaming biofuels for all the troubles in the world is a bit too exaggerated,” stated Isabelle Maurizi, job supervisor at the EBB.

“It has brought lots of benefits. It has actually improved the security of our diesel; it has decreased EU dependence on animal feed imports, thanks to the rapeseed we grow for biodiesel.”

“If there was no biodiesel farmers would simply make their land idle – no food, no feed!”

As the UK hits the 5% of liquid fuels mark, the federal government faces some difficult decisions on how to progress on this problem as it faces tripling the expenses for vehicle drivers by 2020.

Insiders recommend its choice would be to try and get arrangement in Brussels on the impacts of indirect expenses which may constrain what counts as biofuel. However getting contract from countries with powerful farming sectors who gain from the existing plan will be tough.

“When you have a lobby that includes the farming sector and the oil sector it is really hard for Governments to make a U-turn,” said Rob Bailey.

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