Biofuels: 'Irrational' and 'worse than nonrenewable fuel sources'

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

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

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

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

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

Deep fried fuel

But research study performed for Chatham House states that reaching the 5% level suggests that UK motorists will need to pay an additional ₤ 460m a year since of the greater 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 obligations to EU energy targets the expense to vehicle drivers is likely to increase to ₤ 1.3 bn per year by 2020.

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

"Biofuels increase costs and they are a very expensive method to minimize carbon emissions," he said.

The EU biofuel mandates are likewise having extremely distorting effects in the marketplace. Because utilized cooking oil is considered one of the most sustainable types of biodiesel, the cost for it has actually increased quickly. Rob Bailey says that towards the end of 2012 it was more pricey than oil.

"It produces a financial incentive to buy refined palm oil, cook a chip in it to turn it into used cooking oil and after that offer it at profit,"

"It is insane however the incentives exist."

There are also worries that taking EU land out of production to grow rapeseed oil in particular is developing more environment problems than it solves. The more fuel of this type that is taken into cars the larger the deficit created in the edible oils market. This had caused increased imports of palm oil from Indonesia, often produced on deforested land.

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

"Plus you are asking vehicle drivers to pay more for the fuel - it makes no sense, it is an entirely unreasonable technique."

Biofuel benefits

The European Biodiesel Board (EBB), which represents the market, external across the EU, said it knew the problems brought on by the required. But it thinks that biofuels have many positives.

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

"It has actually brought lots of advantages. It has enhanced the security of our diesel; it has minimized 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 government faces some tough choices on how to move forward on this concern as it faces tripling the expenses for vehicle drivers by 2020.

Insiders suggest its choice would be to attempt and get arrangement in Brussels on the effects of indirect expenses which may constrain what counts as biofuel. However getting arrangement from nations with powerful agricultural sectors who take advantage of the current arrangement will be hard.

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

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