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

The UK's "unreasonable" use of biofuels will cost motorists 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 says that biodiesel made from grease was even 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 required fuel providers to add a growing percentage of sustainable materials into the fuel and diesel they provide. These biofuels are generally ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research performed for Chatham House says that reaching the 5% level suggests that UK motorists will have to pay an extra ₤ 460m a year because of the higher cost of fuel at the pump and from filling up more typically as biofuels have a lower energy content.

The report state that if the UK is to meet its commitments to EU energy targets the cost to vehicle drivers is likely to rise to ₤ 1.3 bn per year by 2020.

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

"Biofuels increase costs and they are a very pricey way to minimize carbon emissions," he stated.

The EU biofuel mandates are likewise having hugely distorting results in the market. Because utilized cooking oil is concerned as one of the most sustainable kinds of biodiesel, the price for it has actually risen quickly. Rob Bailey says that towards the end of 2012 it was more expensive than refined palm oil.

"It produces a monetary incentive to purchase refined palm oil, cook a chip in it to turn it into utilized cooking oil and after that offer it at profit,"

"It is insane however the incentives 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 vehicles the bigger the deficit produced in the edible oils market. This had caused increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you consider these indirect effects, biofuels made from vegetable oils in fact result worldwide in more emissions than you would receive from utilizing diesel in the very first location," 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 benefits

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

"Blaming biofuels for all the difficulties in the world is a bit too overstated," said Isabelle Maurizi, task manager at the EBB.

"It has actually brought great deals of benefits. It has enhanced the security of our diesel; it has lowered EU reliance 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 government deals with some difficult decisions on how to progress on this issue as it deals with tripling the expenses for drivers by 2020.

Insiders suggest its choice would be to try and get contract in Brussels on the impacts of indirect costs which may constrain what counts as biofuel. However getting arrangement from nations with effective farming sectors who take advantage of the existing plan will be tough.

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

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