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

The UK's "irrational" usage of biofuels will cost 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 likewise increase food prices.

The author says that biodiesel made from vegetable oil was even worse for the climate than nonrenewable fuel sources.

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 suppliers to include a growing percentage of sustainable materials 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 performed for Chatham House says that reaching the 5% level implies that UK vehicle drivers will have to pay an additional ₤ 460m a year because 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 meet its responsibilities to EU energy targets the expense to is most likely to rise to ₤ 1.3 bn per annum by 2020.

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

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

The EU biofuel mandates are likewise having extremely distorting effects in the marketplace. Because utilized cooking oil is considered among the most sustainable kinds of biodiesel, the rate for it has increased quickly. Rob Bailey says that towards the end of 2012 it was more expensive than refined palm oil.

"It creates a monetary incentive 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 crazy but the rewards are there."

There are likewise worries that taking EU land out of production to grow rapeseed oil in specific is producing more environment issues than it resolves. 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 lead to increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you consider these indirect effects, biofuels made from vegetable oils actually result worldwide in more emissions than you would obtain from using diesel in the first place," stated Rob Bailey.

"Plus you are asking motorists to pay more for the fuel - it makes no sense, it is an entirely irrational technique."

Biofuel benefits

The European Biodiesel Board (EBB), which represents the market, external throughout the EU, said it understood the problems brought on by the required. But it thinks that biofuels have many positives.

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

"It has brought great deals of advantages. It has improved the security of our diesel