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

The UK's "illogical" usage 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 reliance on sustainable liquid fuels will also increase food prices.

The author states that biodiesel made from vegetable oil 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 actually needed fuel providers to add a growing proportion of sustainable products into the gas and diesel they provide. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research study performed for Chatham House says that reaching the 5% level implies that UK vehicle drivers will have to pay an extra ₤ 460m a year due to the fact that of the greater cost of fuel at the pump and from filling up more frequently 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 drivers is most likely to increase to ₤ 1.3 bn per year by 2020.

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

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

The EU biofuel mandates are likewise having extremely distorting results in the market. Because used cooking oil is considered as one of the most sustainable types of biodiesel, the cost for it has actually risen quickly. Rob Bailey states that towards the end of 2012 it was more pricey than refined palm oil.

"It produces a financial incentive to purchase refined palm oil, cook a chip in it to turn it into used cooking oil and then sell it at revenue,"

"It is insane however the rewards are there."

There are likewise stresses that taking EU land out of production to grow rapeseed oil in particular is creating more climate problems than it fixes. The more fuel of this type that is taken into vehicles the larger the deficit created in the edible oils market. This had actually caused increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you take into consideration these indirect effects, biofuels made from veggie oils really result worldwide in more emissions than you would obtain from utilizing diesel in the very first place," said Rob Bailey.

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

Biofuel benefits

The European Biodiesel Board (EBB), which represents the market, external throughout the EU, said it knew the issues triggered by the required. But it believes that biofuels have lots of 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 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 federal government deals with some difficult decisions on how to move forward on this issue as it faces tripling the expenses for motorists by 2020.

Insiders recommend 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 agricultural sectors who take advantage of the current arrangement will be tough.

"When you have a lobby which consists of the farming sector and the oil sector it is very difficult for Governments to make a U-turn," stated Rob Bailey.

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