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

The UK's “unreasonable” usage 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 likewise increase food costs.

The author states that biodiesel made from grease was even worse for the climate than fossil fuels.

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

Since 2008, the UK has required fuel suppliers to add a growing proportion of sustainable products into the fuel and diesel they supply. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

But research study brought out for Chatham House states that reaching the 5% level suggests that UK drivers will have 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 regularly 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 motorists is likely to rise to ₤ 1.3 bn per year by 2020.

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

"Biofuels increase costs and they are a really pricey method to decrease carbon emissions,” he stated.

The EU biofuel mandates are also having hugely distorting effects in the market. Because utilized cooking oil is considered one of the most sustainable kinds of biodiesel, the cost for it has actually risen rapidly. Rob Bailey says that towards the end of 2012 it was more pricey than refined palm oil.

"It creates a financial reward to purchase refined palm oil, prepare a chip in it to turn it into used cooking oil and then sell it at earnings,“

"It is insane but the rewards exist.“

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

"Once you take into account these indirect impacts, biofuels made from veggie oils really result worldwide in more emissions than you would receive from utilizing diesel in the first place,” stated Rob Bailey.

"Plus you are asking drivers to pay more for the fuel - it makes no sense, it is a totally illogical method.“

Biofuel benefits

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, said it was mindful of the problems triggered by the mandate. But it believes that biofuels have many positives.

"Blaming biofuels for all the problems worldwide is a bit too overstated,” stated Isabelle Maurizi, task manager at the EBB.

"It has brought lots of advantages. It has actually improved the security of our diesel