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

The UK's "irrational" use of biofuels will cost motorists 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 vegetable oil was worse for the environment than nonrenewable fuel sources.

Under EU law, external, biofuels are set to comprise 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 gas and diesel they supply. These biofuels are generally ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research carried out for Chatham House says that reaching the 5% level indicates that UK motorists will have to pay an additional ₤ 460m a year since of the higher expense of fuel at the pump and from filling more frequently as biofuels have a lower energy content.

The report state that if the UK is to meet its obligations to EU energy targets the cost to vehicle drivers is most likely to rise to ₤ 1.3 bn per year by 2020.

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

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

The EU biofuel mandates are likewise having extremely distorting results in the market. Because used cooking oil is considered among the most sustainable kinds of biodiesel, the cost for it has actually increased quickly. Rob Bailey says that towards the end of 2012 it was more costly than refined palm oil.

"It creates a financial reward to purchase refined palm oil, prepare 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 also worries that taking EU land out of production to grow rapeseed oil in particular is developing more climate issues than it resolves. The more fuel of this type that is put into cars and trucks the larger the deficit produced in the edible oils market. This had lead to increased imports of palm oil from Indonesia, frequently produced on deforested land.

"Once you take into account these indirect effects, biofuels made from vegetable 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 drivers to pay more for the fuel - it makes no sense, it is a totally illogical technique."

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, said it understood the issues triggered by the mandate. But it believes that biofuels have lots of positives.

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

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