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

The UK's "unreasonable" usage of biofuels will cost motorists 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 grease was worse for the environment 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 providers to include a growing proportion of sustainable products into the gas and diesel they provide. 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 indicates that UK drivers will need to pay an additional ₤ 460m a year due to the fact that of the higher expense of fuel at the pump and from filling up more frequently as biofuels have a lower energy material.

The report say that if the UK is to satisfy its responsibilities to EU energy targets the expense to drivers is likely to increase to ₤ 1.3 bn per year 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 an extremely expensive method to minimize carbon emissions," he said.

The EU biofuel requireds are also having hugely distorting impacts in the marketplace. Because used cooking oil is considered as 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 costly than refined palm oil.

"It develops a financial incentive to buy 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 incentives are there."

There are likewise stresses that taking EU land out of production to grow rapeseed oil in particular is developing more climate problems than it fixes. The more fuel of this type that is taken into vehicles the bigger the deficit created in the edible oils market. This had actually lead to increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you take into account these indirect effects, biofuels made from veggie oils really result worldwide in more emissions than you would receive 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 strategy."

Biofuel advantages

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

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

"It has actually brought lots of benefits. It has improved the security of our diesel