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

The UK's "irrational" usage of biofuels will cost vehicle drivers around ₤ 460 million over the next 12 months, a think tank says.

A report by Chatham House, external states the growing dependence on sustainable liquid fuels will also increase food costs.

The author states that biodiesel made from grease was even worse for the climate than nonrenewable fuel sources.

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

Since 2008, the UK has needed fuel suppliers to add a growing proportion of sustainable products into the petrol and diesel they supply. These biofuels are mainly 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 implies that UK motorists will have to pay an extra ₤ 460m a year because of the greater cost of fuel at the pump and from filling up more frequently as biofuels have a lower energy material.

The report state that if the UK is to meet its commitments to EU energy targets the cost to motorists is most likely to increase to ₤ 1.3 bn per annum by 2020.

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

"Biofuels increase expenses and they are a very costly method to decrease carbon emissions," he said.

The EU biofuel requireds are likewise having hugely distorting results in the marketplace. Because utilized cooking oil is related to as one of the most sustainable types of biodiesel, the price for it has increased quickly. Rob Bailey states that towards the end of 2012 it was more expensive than refined palm oil.

"It creates a financial reward to buy refined palm oil, prepare a chip in it to turn it into utilized cooking oil and after that offer it at profit,"

"It is insane but the rewards are there."

There are likewise worries that taking EU land out of production to grow rapeseed oil in specific is developing more climate issues than it fixes. The more fuel of this type that is put into cars the larger the deficit created in the edible oils market. This had actually lead to increased imports of palm oil from Indonesia, typically produced on deforested land.

"Once you consider these indirect impacts, biofuels made from vegetable oils actually result worldwide in more emissions than you would get from using 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 an entirely unreasonable technique."

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, said it knew the issues brought on by the mandate. But it thinks that biofuels have lots of positives.

"Blaming biofuels for all the difficulties in the world is a bit too overstated," stated Isabelle Maurizi, project supervisor at the EBB.

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