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

The UK's "illogical" use 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 grease was even worse for the environment than fossil fuels.

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 materials into the fuel and diesel they supply. These biofuels are mainly ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

But research carried out for Chatham House says that reaching the 5% level implies 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 up regularly as biofuels have a lower energy content.

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

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

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

The EU biofuel mandates are also having extremely distorting impacts in the marketplace. Because utilized cooking oil is related to as among the most sustainable types of biodiesel, the rate for it has actually increased rapidly. Rob Bailey states that towards the end of 2012 it was more costly than refined palm oil.

"It develops a financial incentive to purchase refined palm oil, prepare a chip in it to turn it into used cooking oil and then offer it at profit,"

"It is insane however the incentives are there."

There are also frets that taking EU land out of production to grow rapeseed oil in is creating more environment issues than it fixes. The more fuel of this type that is taken into automobiles the bigger the deficit created 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 results, biofuels made from veggie oils in fact result worldwide in more emissions than you would get from utilizing diesel in the first place," said Rob Bailey.

"Plus you are asking drivers to pay more for the fuel - it makes no sense, it is a completely illogical strategy."

Biofuel benefits

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

"Blaming biofuels for all the problems on the planet is a bit too overstated," stated Isabelle Maurizi, job manager at the EBB.

"It has brought lots of advantages. It has enhanced the security of our diesel