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

The UK's "unreasonable" 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 dependence on sustainable liquid fuels will also increase food costs.

The author says that biodiesel made from grease was worse for the climate 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 suppliers to include a growing proportion of sustainable products into the petrol and diesel they provide. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research study performed for Chatham House states that reaching the 5% level indicates that UK vehicle drivers will need to pay an extra ₤ 460m a year since of the higher expense 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 satisfy its responsibilities to EU energy targets the expense to vehicle drivers is most likely to rise to ₤ 1.3 bn per year by 2020.

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

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

The EU biofuel requireds are also having extremely distorting effects in the market. Because used cooking oil is considered one of the most sustainable types of biodiesel, the rate for it has . Rob Bailey says that towards completion of 2012 it was more costly than refined palm oil.

"It produces a financial incentive to purchase refined palm oil, cook a chip in it to turn it into utilized cooking oil and after that offer it at earnings,"

"It is crazy however the rewards are there."

There are likewise stresses that taking EU land out of production to grow rapeseed oil in particular is creating more climate problems than it fixes. The more fuel of this type that is put into automobiles the bigger the deficit developed in the edible oils market. This had actually resulted in increased imports of palm oil from Indonesia, frequently produced on deforested land.

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

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

Biofuel benefits

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, stated it understood the problems brought on by the required. But it thinks that biofuels have lots of positives.

"Blaming biofuels for all the problems in the world is a bit too exaggerated," said Isabelle Maurizi, task manager at the EBB.

"It has actually brought lots of benefits. It has actually enhanced the security of our diesel; it has actually reduced EU dependence 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 strikes the 5% of liquid fuels mark, the government faces some tough decisions on how to move forward on this concern as it deals with tripling the expenses for drivers by 2020.

Insiders recommend its preference would be to try and get agreement in Brussels on the effects of indirect costs which might constrain what counts as biofuel. However getting contract from countries with powerful farming sectors who gain from the existing arrangement will be difficult.

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

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