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

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

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

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

Since 2008, the UK has needed fuel suppliers to include a growing proportion of sustainable products into the petrol and diesel they provide. These biofuels are generally ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

But research brought out for Chatham House says that reaching the 5% level implies that UK vehicle drivers will have to pay an extra ₤ 460m a year because of the greater cost of fuel at the pump and from filling up regularly as biofuels have a lower energy content.

The report state that if the UK is to satisfy its responsibilities to EU energy targets the cost to is likely to rise to ₤ 1.3 bn per annum by 2020.

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

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

The EU biofuel mandates are likewise having extremely distorting impacts in the marketplace. Because utilized cooking oil is considered as among the most sustainable types of biodiesel, the cost for it has actually increased quickly. Rob Bailey says that towards completion of 2012 it was more pricey than refined palm oil.

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

"It is insane but the rewards exist."

There are likewise frets that taking EU land out of production to grow rapeseed oil in particular is producing more environment problems than it resolves. The more fuel of this type that is put into cars the bigger the deficit developed in the edible oils market. This had actually resulted in increased imports of palm oil from Indonesia, often produced on deforested land.

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

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

Biofuel benefits

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

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

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