Biofuels: 'Irrational' and '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 states the growing reliance on sustainable liquid fuels will likewise increase food prices.

The author says that biodiesel made from grease 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 transport fuel from today.

Since 2008, the UK has needed fuel suppliers to add a growing proportion of sustainable materials into the fuel 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 study performed for Chatham House says that reaching the 5% level suggests that UK drivers will need to pay an extra ₤ 460m a year since of the higher cost of fuel at the pump and from filling up more typically as biofuels have a lower energy material.

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

"It is tough to find any excellent news," Rob Bailey, senior research fellow at Chatham House, told BBC News.

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

The EU biofuel mandates are also having hugely distorting impacts in the market. Because used cooking oil is regarded as one of the most sustainable kinds of biodiesel, the price for it has actually increased quickly. Rob Bailey states that towards the end of 2012 it was more costly than refined palm oil.

"It creates a financial incentive to purchase refined palm oil, cook a chip in it to turn it into used cooking oil and after that offer it at revenue,"

"It is insane however the rewards are there."

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

"Once you take into consideration these indirect effects, biofuels made from veggie oils actually result worldwide in more emissions than you would receive from using diesel in the first location," said Rob Bailey.

"Plus you are asking motorists to pay more for the fuel - it makes no sense, it is a totally irrational technique."

Biofuel advantages

The European Biodiesel Board (EBB), which represents the market, external across the EU, stated it knew the problems triggered by the mandate. But it thinks that biofuels have numerous positives.

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

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