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

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 says the growing reliance on sustainable liquid fuels will also increase food prices.

The author says that biodiesel made from vegetable oil was worse for the climate than fossil fuels.

Under EU law, external, biofuels are set to comprise 5% of the UK's transport fuel from today.

Since 2008, the UK has needed fuel suppliers to include a growing proportion of sustainable materials into the fuel and diesel they provide. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

But research 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 since of the higher expense of fuel at the pump and from filling up more typically as biofuels have a lower energy content.

The report say that if the UK is to satisfy its responsibilities to EU energy targets the cost to vehicle drivers is likely to rise to ₤ 1.3 bn per annum by 2020.

"It is difficult to find 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 mandates are likewise having extremely distorting results in the marketplace. Because used cooking oil is considered as among the most sustainable types of biodiesel, the rate for it has risen quickly. Rob Bailey says that towards the end of 2012 it was more expensive than refined palm oil.

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

"It is insane but the rewards are there."

There are likewise frets that taking EU land out of production to grow rapeseed oil in particular is producing more climate problems than it fixes. The more fuel of this type that is taken into cars and trucks 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 consider these indirect effects, biofuels made from vegetable oils actually result worldwide in more emissions than you would get from utilizing diesel in the very first location," said Rob Bailey.

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

Biofuel benefits

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

"Blaming biofuels for all the troubles on the planet is a bit too exaggerated," said Isabelle Maurizi, project manager at the EBB.

"It has actually brought lots of advantages. It has enhanced the security of our diesel; it has reduced EU reliance 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 challenging choices on how to move on on this concern as it faces tripling the costs for motorists by 2020.

Insiders recommend its preference would be to try and get agreement in Brussels on the impacts of indirect expenses which may constrain what counts as biofuel. However getting agreement from countries with effective agricultural sectors who take advantage of the existing arrangement will be tough.

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

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