M2 Capital Sdn. Bhd

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  • Founded Date April 27, 1999
  • Sectors Manufacturing
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Biofuels: ‚Irrational‘ and ‚Worse than Fossil Fuels‘

Biofuels: ‚Irrational‘ and ‚even worse than nonrenewable fuel sources‘

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

A report by Chatham House, external says the growing dependence 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 make up 5% of the UK’s transport fuel from today.

Since 2008, the UK has required fuel suppliers to include a growing proportion of sustainable products 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 study performed for Chatham House states that reaching the 5% level indicates that UK motorists will need to pay an additional ₤ 460m a year due to the fact that of the higher cost of fuel at the pump and from filling regularly 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 rise to ₤ 1.3 bn per year by 2020.

„It is hard to discover any great news,“ Rob Bailey, senior research fellow at Chatham House, informed BBC News.

„Biofuels increase costs and they are an extremely pricey method to reduce carbon emissions,“ he stated.

The EU biofuel requireds are also having hugely distorting impacts in the marketplace. Because utilized cooking oil is considered as among the most sustainable kinds of biodiesel, the price for it has increased quickly. Rob Bailey states that towards the end of 2012 it was more than refined palm oil.

„It creates a financial reward to buy refined palm oil, prepare a chip in it to turn it into used cooking oil and then sell it at revenue,“

„It is crazy but the rewards are there.“

There are also stresses that taking EU land out of production to grow rapeseed oil in specific is creating more environment problems than it fixes. The more fuel of this type that is put into vehicles the bigger the deficit produced in the edible oils market. This had lead to increased imports of palm oil from Indonesia, often produced on deforested land.

„Once you take into consideration these indirect results, biofuels made from veggie oils really result worldwide in more emissions than you would obtain from utilizing diesel in the first location,“ said Rob Bailey.

„Plus you are asking motorists to pay more for the fuel – it makes no sense, it is an entirely illogical technique.“

Biofuel benefits

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, stated it understood the issues triggered by the mandate. But it thinks that biofuels have numerous positives.

„Blaming biofuels for all the difficulties worldwide is a bit too exaggerated,“ said Isabelle Maurizi, job supervisor at the EBB.

„It has brought great deals of benefits. It has actually improved the security of our diesel; it has actually reduced 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 faces some difficult choices on how to move on on this problem as it deals with 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 might constrain what counts as biofuel. However getting agreement from nations with effective agricultural sectors who benefit from the current plan will be difficult.

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

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