Biofuels: 'Irrational' and 'worse than nonrenewable fuel sources'
The UK's "irrational" usage of biofuels will cost drivers around ₤ 460 million over the next 12 months, a think tank states.
A report by Chatham House, external says the growing dependence on sustainable liquid fuels will also increase food prices.
The author states 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 needed fuel suppliers to include a growing percentage of sustainable products into the fuel and diesel they supply. These biofuels are generally 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 implies that UK motorists will need to pay an extra ₤ 460m a year due to the fact that of the greater cost of fuel at the pump and from filling more frequently as biofuels have a lower energy material.
The report say that if the UK is to fulfill its obligations to EU energy targets the cost to drivers is most likely to increase to ₤ 1.3 bn per annum by 2020.
"It is difficult to discover any great news," Rob Bailey, senior research study fellow at Chatham House, told BBC News.
"Biofuels increase costs and they are an extremely expensive way to decrease carbon emissions," he stated.
The EU biofuel requireds are also having extremely distorting impacts in the market. Because utilized cooking oil is considered as one of the most sustainable types of biodiesel, the rate for it has actually increased rapidly. Rob Bailey says that towards the end of 2012 it was more pricey than refined palm oil.
"It produces a financial incentive to purchase refined palm oil, prepare a chip in it to turn it into utilized cooking oil and then offer it at profit,"
"It is insane however the rewards exist."
There are also stresses that taking EU land out of production to grow rapeseed oil in specific is developing more problems than it fixes. The more fuel of this type that is put into cars and trucks the bigger 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 impacts, biofuels made from veggie oils really result worldwide in more emissions than you would receive from using diesel in the very first place," stated Rob Bailey.
"Plus you are asking vehicle drivers to pay more for the fuel - it makes no sense, it is a totally unreasonable technique."
Biofuel benefits
The European Biodiesel Board (EBB), which represents the industry, external across the EU, stated it was conscious of the problems triggered by the required. But it thinks that biofuels have many positives.
"Blaming biofuels for all the troubles in the world is a bit too exaggerated," said Isabelle Maurizi, job supervisor at the EBB.
"It has actually brought lots of advantages. It has enhanced the security of our diesel
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Biofuels: 'Irrational' and 'Worse than Fossil Fuels'
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