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Biofuels: ‘Irrational’ and ‘Worse than Fossil Fuels’

Biofuels: ‘Irrational’ and ‘worse than sources’

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 states the growing reliance on sustainable liquid fuels will also increase food costs.

The author says 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 transportation fuel from today.

Since 2008, the UK has actually needed fuel providers to include a growing percentage of sustainable products into the fuel and diesel they supply. These biofuels are mainly ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research performed for Chatham House states that reaching the 5% level indicates that UK motorists will need to pay an additional ₤ 460m a year due to the fact that of the greater cost of fuel at the pump and from filling regularly as biofuels have a lower energy content.

The report state that if the UK is to satisfy its commitments to EU energy targets the cost to motorists is most likely to rise to ₤ 1.3 bn per year by 2020.

„It is tough to find any good news,“ Rob Bailey, senior research study fellow at Chatham House, informed BBC News.

„Biofuels increase costs and they are a very costly way to minimize carbon emissions,“ he stated.

The EU biofuel mandates are also having extremely distorting effects in the market. Because used cooking oil is concerned as one of the most sustainable types of biodiesel, the price for it has increased quickly. Rob Bailey says that towards the end of 2012 it was more costly than refined palm oil.

„It creates a financial reward to buy refined palm oil, prepare a chip in it to turn it into used cooking oil and then offer it at revenue,“

„It is insane however the rewards exist.“

There are also stresses that taking EU land out of production to grow rapeseed oil in particular is producing more environment issues than it solves. The more fuel of this type that is put into cars the larger the deficit developed in the edible oils market. This had actually caused increased imports of palm oil from Indonesia, frequently produced on deforested land.

„Once you take into consideration these indirect effects, biofuels made from vegetable oils actually result worldwide in more emissions than you would obtain from utilizing diesel in the very first location,“ said Rob Bailey.

„Plus you are asking drivers to pay more for the fuel – it makes no sense, it is an entirely illogical strategy.“

Biofuel benefits

The European Biodiesel Board (EBB), which represents the industry, external across the EU, said it knew the issues caused by the mandate. But it believes that biofuels have many positives.

„Blaming biofuels for all the troubles worldwide is a bit too exaggerated,“ said Isabelle Maurizi, job supervisor at the EBB.

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

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

As the UK hits the 5% of liquid fuels mark, the federal government deals with some difficult decisions on how to move on on this concern as it faces tripling the costs for drivers by 2020.

Insiders recommend its choice would be to attempt and get agreement in Brussels on the impacts of indirect expenses which might constrain what counts as biofuel. However getting agreement from nations with effective agricultural sectors who gain from the current plan will be difficult.

„When you have a lobby which consists of the agricultural sector and the oil sector it is really difficult for Governments to make a U-turn,“ said Rob Bailey.

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