Biofuels: ‘Irrational’ and ‘worse than nonrenewable fuel sources’

The UK’s “irrational” usage of biofuels will cost drivers 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 prices.

The author says that biodiesel made from grease was worse for the climate than nonrenewable fuel sources.

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

Since 2008, the UK has actually needed fuel providers to add a growing proportion of sustainable products into the gas and diesel they provide. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, oil and tallow.

Deep fried fuel

But research study carried out for Chatham House says that reaching the 5% level indicates that UK drivers will have to pay an extra ₤ 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 state that if the UK is to fulfill its responsibilities to EU energy targets the cost to drivers is most likely to rise to ₤ 1.3 bn per annum by 2020.

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

“Biofuels increase expenses and they are a really pricey way to minimize carbon emissions,” he said.

The EU biofuel mandates are also having hugely distorting effects in the marketplace. Because used cooking oil is related to as one of the most sustainable types of biodiesel, the price for it has actually increased rapidly. Rob Bailey states that towards completion of 2012 it was more expensive than refined palm oil.

“It produces a financial incentive to purchase refined palm oil, cook a chip in it to turn it into used cooking oil and then sell it at profit,”

“It is insane but the rewards exist.”

There are also frets that taking EU land out of production to grow rapeseed 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, often produced on deforested land.

“Once you take into consideration these indirect impacts, biofuels made from veggie oils really result worldwide in more emissions than you would get 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 illogical technique.”

Biofuel benefits

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

“Blaming biofuels for all the difficulties worldwide is a bit too overstated,” stated Isabelle Maurizi, job supervisor at the EBB.

“It has brought lots of advantages. It has actually enhanced the security of our diesel