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

The UK's "unreasonable" use 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 likewise increase food prices.

The author says that biodiesel made from grease was worse for the environment than fossil fuels.

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

Since 2008, the UK has required fuel suppliers to add a growing proportion of sustainable materials 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 carried out for Chatham House says that reaching the 5% level indicates that UK motorists will need to pay an extra ₤ 460m a year due to the fact that of the higher cost of fuel at the pump and from filling more frequently as biofuels have a lower energy material.

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

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

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

The EU biofuel requireds are likewise having extremely distorting impacts in the marketplace. Because utilized cooking oil is considered one of the most sustainable kinds of biodiesel, the cost for it has actually increased rapidly. Rob Bailey states that towards the end of 2012 it was more costly than refined palm oil.

"It develops a monetary reward to purchase refined palm oil, prepare a chip in it to turn it into utilized cooking oil and then sell it at earnings,"

"It is crazy however the incentives are there."

There are also worries that taking EU land out of production to grow rapeseed oil in particular is developing more climate issues than it fixes. The more fuel of this type that is taken into cars and trucks the bigger the deficit produced in the edible oils market. This had caused increased imports of palm oil from Indonesia, frequently produced on deforested land.

"Once you take into consideration these indirect impacts, biofuels made from veggie oils in fact result worldwide in more emissions than you would receive 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 an entirely illogical strategy."

Biofuel advantages

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

"Blaming biofuels for all the troubles worldwide is a bit too overstated," said Isabelle Maurizi, project supervisor at the EBB.

"It has brought great deals of advantages. It has actually enhanced the security of our diesel; it has actually decreased EU dependency 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 challenging choices on how to move forward on this problem as it deals with tripling the expenses for motorists by 2020.

Insiders recommend its preference would be to attempt and get contract in Brussels on the impacts of indirect costs which might constrain what counts as biofuel. However getting contract from countries with effective agricultural sectors who gain from the present arrangement will be challenging.

"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," stated Rob Bailey.

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