Biofuels: 'Irrational' and 'even worse than fossil fuels'

The UK's "unreasonable" usage of biofuels will cost drivers around ₤ 460 million over the next 12 months, a think tank says.

A report by Chatham House, external states the growing dependence on sustainable liquid fuels will likewise increase food costs.

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

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

Since 2008, the UK has required fuel providers to add a growing percentage of sustainable products into the gas 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 study brought out for Chatham House states that reaching the 5% level means that UK motorists will need to pay an additional ₤ 460m a year due to the fact that of the higher cost of fuel at the pump and from filling up more frequently as biofuels have a lower energy content.

The report say that if the UK is to meet its responsibilities to EU energy targets the cost to motorists is likely to rise to ₤ 1.3 bn per annum by 2020.

"It is tough to discover any excellent news," Rob Bailey, senior research study fellow at Chatham House, informed BBC News.

"Biofuels increase costs and they are a very pricey method to reduce carbon emissions," he stated.

The EU biofuel mandates are also having hugely distorting impacts in the market. Because used cooking oil is related to as among the most sustainable kinds of biodiesel, the rate for it has increased rapidly. Rob Bailey says that towards completion of 2012 it was more costly than refined palm oil.

"It produces a monetary incentive to purchase refined palm oil, cook a chip in it to turn it into used cooking oil and then sell it at revenue,"

"It is crazy but the incentives are there."

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

"Once you take into account these indirect results, biofuels made from vegetable oils actually result worldwide in more emissions than you would obtain from utilizing diesel in the first place," said Rob Bailey.

"Plus you are asking drivers to pay more for the fuel - it makes no sense, it is a completely irrational technique."

Biofuel advantages

The European Biodiesel Board (EBB), which represents the market, external throughout the EU, stated it knew the issues caused by the mandate. But it thinks that biofuels have numerous positives.

"Blaming biofuels for all the difficulties worldwide is a bit too exaggerated," said Isabelle Maurizi, project manager at the EBB.

"It has actually brought lots of benefits. It has actually improved the security of our diesel; it has minimized EU reliance 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 government deals with some difficult decisions on how to move on on this problem as it faces tripling the expenses for vehicle drivers by 2020.

Insiders suggest its preference would be to attempt and get contract in Brussels on the impacts of indirect costs which may constrain what counts as biofuel. However getting arrangement from nations with effective agricultural sectors who take advantage of the present plan will be hard.

"When you have a lobby which consists of the farming sector and the oil sector it is very difficult for Governments to make a U-turn," stated Rob Bailey.

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