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

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

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

The author states that biodiesel made from vegetable oil was worse for the climate than nonrenewable fuel sources.

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 add a growing percentage of sustainable materials into the petrol and diesel they provide. These biofuels are mainly ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

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

The report state that if the UK is to satisfy its responsibilities to EU energy targets the cost to vehicle drivers is most likely to increase to ₤ 1.3 bn per year by 2020.

"It is hard to find any good news," Rob Bailey, senior research study fellow at Chatham House, told BBC News.

"Biofuels increase costs and they are a very costly way to lower carbon emissions," he said.

The EU biofuel mandates are also having hugely distorting results in the market. Because used cooking oil is considered one of the most sustainable types of biodiesel, the rate for it has actually increased rapidly. Rob Bailey states that towards the end of 2012 it was more expensive than refined palm oil.

"It creates a monetary reward to purchase refined palm oil, cook a chip in it to turn it into utilized cooking oil and then offer it at profit,"

"It is insane but the rewards are there."

There are also worries that taking EU land out of production to grow rapeseed oil in specific is creating more environment issues than it resolves. The more fuel of this type that is taken into vehicles the larger 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 consider these indirect impacts, biofuels made from veggie oils really result worldwide in more emissions than you would obtain from utilizing diesel in the first place," stated Rob Bailey.

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

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external across the EU, stated it understood the issues triggered by the required. But it believes that biofuels have many positives.

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

"It has actually brought great deals of benefits. It has actually enhanced the security of our diesel; it has reduced EU dependency 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 hard choices on how to progress on this issue as it faces tripling the expenses for motorists by 2020.

Insiders recommend its preference would be to try and get contract in Brussels on the impacts of indirect costs which might constrain what counts as biofuel. However getting arrangement from countries with powerful farming sectors who benefit from the current plan will be tough.

"When you have a lobby that includes the agricultural sector and the oil sector it is extremely hard for Governments to make a U-turn," said Rob Bailey.

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