Biofuels: 'Irrational' and 'worse than nonrenewable fuel sources'

The UK's "illogical" 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 says the growing dependence on sustainable liquid fuels will also increase food prices.

The author says that biodiesel made from grease was worse for the environment 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 actually needed fuel providers to include a growing percentage of sustainable products into the fuel and diesel they provide. These are generally 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 means that UK motorists 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 more frequently as biofuels have a lower energy content.

The report say that if the UK is to fulfill its responsibilities to EU energy targets the expense to motorists 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, told BBC News.

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

The EU biofuel mandates are also having extremely distorting impacts in the market. Because used cooking oil is considered as one of the most sustainable kinds of biodiesel, the cost for it has increased quickly. Rob Bailey says that towards completion of 2012 it was more expensive than refined palm oil.

"It produces a monetary reward to purchase refined palm oil, cook a chip in it to turn it into utilized cooking oil and then sell it at revenue,"

"It is insane however the incentives exist."

There are likewise frets that taking EU land out of production to grow rapeseed oil in particular is producing more climate 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 lead to increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you take into account these indirect results, biofuels made from vegetable oils in fact result worldwide in more emissions than you would obtain from utilizing diesel in the very first location," said Rob Bailey.

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

Biofuel benefits

The European Biodiesel Board (EBB), which represents the market, external throughout the EU, stated it was conscious of the problems caused by the required. But it believes that biofuels have many positives.

"Blaming biofuels for all the troubles in the world is a bit too overstated," said Isabelle Maurizi, project supervisor at the EBB.

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