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Biofuels: 'Irrational' and 'worse than fossil fuels'
The UK's "irrational" 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 states the growing dependence on sustainable liquid fuels will also increase food prices.
The author states that biodiesel made from grease was even worse for the environment than fossil fuels.
Under EU law, external, biofuels are set to comprise 5% of the UK's transportation fuel from today.
Since 2008, the UK has required fuel suppliers to add a growing proportion of sustainable materials 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 study performed for Chatham House says that reaching the 5% level suggests that UK vehicle drivers will need to pay an extra _ 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 fulfill its responsibilities to EU energy targets the expense 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 study fellow at Chatham House, informed BBC News.
"Biofuels increase expenses and they are a very expensive method to minimize carbon emissions," he said.
The EU biofuel requireds are also having hugely distorting effects in the marketplace. Because utilized cooking oil is considered among the most sustainable kinds of biodiesel, the cost for it has increased quickly. Rob Bailey says that towards the end of 2012 it was more pricey than refined palm oil.
"It creates a financial reward to buy refined palm oil, cook a chip in it to turn it into used cooking oil and then offer it at profit,"
"It is insane but the incentives exist."
There are likewise worries that taking EU land out of production to grow rapeseed oil in particular is creating more environment problems than it fixes. The more fuel of this type that is put into cars and trucks the larger the deficit developed in the edible oils market. This had actually resulted in increased imports of palm oil from Indonesia, frequently produced on deforested land.
"Once you take into consideration these indirect impacts, biofuels made from vegetable oils in fact 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 a totally illogical technique."
Biofuel benefits
The European Biodiesel Board (EBB), which represents the industry, external across the EU, said it knew the issues brought on by the required. But it believes that biofuels have many positives.
"Blaming biofuels for all the difficulties in the world is a bit too overstated," said Isabelle Maurizi, project manager at the EBB.
"It has brought lots of advantages. It has actually improved the security of our diesel; it has decreased EU dependence 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 strikes the 5% of liquid fuels mark, the government deals with some difficult choices on how to move forward on this issue as it faces tripling the costs for motorists by 2020.
Insiders suggest its choice would be to attempt and get contract in Brussels on the impacts of indirect expenses which might constrain what counts as biofuel. However getting agreement from countries with powerful farming sectors who benefit from the present plan will be difficult.
"When you have a lobby that includes the farming sector and the oil sector it is really tough for Governments to make a U-turn," stated Rob Bailey.
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