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 says the growing reliance on sustainable liquid fuels will also increase food rates.

The author states that biodiesel made from veggie oil was worse for the climate 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 needed fuel suppliers to include a growing percentage of sustainable materials into the fuel and diesel they supply. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research study brought out for Chatham House states that reaching the 5% level suggests that UK motorists will have to pay an extra ₤ 460m a year due to the fact that of the greater expense of fuel at the pump and from filling up regularly as biofuels have a lower energy material.

The report say that if the UK is to fulfill its obligations to EU energy targets the to vehicle drivers is most likely to rise to ₤ 1.3 bn per year by 2020.

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

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

The EU biofuel mandates are also having hugely distorting effects in the market. Because utilized cooking oil is considered as one of the most sustainable kinds of biodiesel, the cost for it has risen rapidly. Rob Bailey states that towards completion of 2012 it was more expensive than refined palm oil.

"It develops a monetary reward to purchase refined palm oil, cook a chip in it to turn it into utilized cooking oil and after that offer it at revenue,"

"It is crazy but the incentives exist."

There are also frets that taking EU land out of production to grow rapeseed oil in specific is developing more environment issues than it solves. The more fuel of this type that is put into automobiles the bigger the deficit produced in the edible oils market. This had actually caused increased imports of palm oil from Indonesia, typically produced on deforested land.

"Once you consider these indirect effects, biofuels made from veggie oils in fact result worldwide in more emissions than you would obtain from utilizing diesel in the 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 strategy."

Biofuel advantages

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

"Blaming biofuels for all the difficulties on the planet is a bit too exaggerated," said Isabelle Maurizi, project supervisor at the EBB.

"It has brought great deals of benefits. It has actually enhanced the security of our diesel