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

The UK's "illogical" usage of biofuels will cost motorists around ₤ 460 million over the next 12 months, a think tank states.

A report by Chatham House, external states the growing reliance on sustainable liquid fuels will also increase food prices.

The author states that biodiesel made from grease was even 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 required fuel providers to include a growing percentage of sustainable materials into the fuel and diesel they supply. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research study brought out for Chatham House says that reaching the 5% level suggests that UK vehicle drivers will need to pay an extra ₤ 460m a year due to the fact that of the higher expense of fuel at the pump and from filling more frequently as biofuels have a lower energy content.

The report say that if the UK is to meet its commitments to EU energy targets the expense to drivers is likely to increase to ₤ 1.3 bn per year by 2020.

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

"Biofuels increase costs and they are an extremely expensive way to lower carbon emissions," he said.

The EU biofuel mandates are also having hugely distorting impacts in the market. Because used cooking oil is considered as among the most sustainable types of biodiesel, the price for it has risen rapidly. Rob Bailey says that towards completion of 2012 it was more pricey than refined palm oil.

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

"It is insane but the rewards are there."

There are also frets that taking EU land out of production to grow rapeseed oil in specific is creating more environment issues than it solves. The more fuel of this type that is taken into cars and trucks the bigger the deficit produced in the edible oils market. This had resulted in increased imports of palm oil from Indonesia, frequently produced on deforested land.

"Once you take into consideration these indirect impacts, biofuels made from veggie oils actually result worldwide in more emissions than you would obtain from utilizing diesel in the first location," stated Rob Bailey.

"Plus you are asking drivers to pay more for the fuel - it makes no sense, it is an entirely unreasonable strategy."

Biofuel benefits

The European Biodiesel Board (EBB), which represents the industry, external across the EU, said it was mindful of the issues caused by the required. But it thinks that biofuels have lots of positives.

"Blaming biofuels for all the troubles on the planet is a bit too overstated," stated Isabelle Maurizi, project supervisor at the EBB.

"It has actually brought lots of advantages. It has enhanced the security of our diesel; it has actually minimized EU dependency on animal feed imports, thanks to the rapeseed we grow for biodiesel."

"If there was no biodiesel farmers would just make their land idle - no food, no feed!"

As the UK hits the 5% of liquid fuels mark, the federal government faces some tough decisions on how to move on on this problem as it faces tripling the costs for vehicle drivers by 2020.

Insiders suggest its choice would be to attempt and get contract in Brussels on the impacts of indirect costs which might constrain what counts as biofuel. However getting arrangement from countries with effective farming sectors who gain from the current arrangement will be challenging.

"When you have a lobby that includes the agricultural sector and the oil sector it is really tough for Governments to make a U-turn," stated Rob Bailey.

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