Biofuels: 'Irrational' and 'even worse than fossil fuels'

The UK's "irrational" use of biofuels will cost vehicle 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 rates.

The author states that biodiesel made from grease was worse for the climate than fossil fuels.

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 add a growing proportion of sustainable materials into the fuel and diesel they supply. These biofuels are mainly ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

But research study carried out for Chatham House states that reaching the 5% level implies that UK vehicle drivers will have to pay an additional ₤ 460m a year because of the greater cost 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 obligations to EU energy targets the cost to drivers is likely to increase to ₤ 1.3 bn per annum by 2020.

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

"Biofuels increase costs and they are a really costly way to lower carbon emissions," he stated.

The EU biofuel mandates are likewise having hugely distorting impacts in the marketplace. Because utilized cooking oil is considered one of the most sustainable types of biodiesel, the cost for it has increased rapidly. Rob Bailey states that towards the end of 2012 it was more pricey than refined palm oil.

"It produces a monetary reward to buy refined palm oil, cook a chip in it to turn it into utilized cooking oil and after that offer it at profit,"

"It is insane however the rewards exist."

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

"Once you consider these indirect results, biofuels made from veggie oils in fact result worldwide in more emissions than you would get from utilizing diesel in the first location," said Rob Bailey.

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

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external across the EU, said it knew the issues triggered by the mandate. But it believes that biofuels have many positives.

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

"It has actually brought lots of advantages. It has improved the security of our diesel