Biofuels: 'Irrational' and 'even 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 says.

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

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

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

Since 2008, the UK has required fuel providers to add a growing percentage of sustainable products into the fuel and diesel they provide. These biofuels are mainly ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

But research performed for Chatham House says that reaching the 5% level means that UK drivers will need to pay an additional ₤ 460m a year since of the higher 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 responsibilities to EU energy targets the cost to motorists is most likely to rise to ₤ 1.3 bn per year by 2020.

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

"Biofuels increase costs and they are a very expensive way to reduce carbon emissions," he said.

The EU biofuel mandates are also having hugely distorting results in the marketplace. Because utilized cooking oil is considered as among the most sustainable kinds of biodiesel, the cost for it has actually increased quickly. Rob Bailey states that towards the end of 2012 it was more pricey than refined palm oil.

"It produces a monetary reward to purchase refined palm oil, cook a chip in it to turn it into utilized cooking oil and after that sell it at earnings,"

"It is insane but the rewards are there."

There are also worries that taking EU land out of production to grow rapeseed oil in particular is producing more environment problems than it fixes. The more fuel of this type that is taken into vehicles the bigger the deficit developed in the edible oils market. This had lead to increased imports of palm oil from Indonesia, typically produced on deforested land.

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

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

Biofuel benefits

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, stated it knew the problems triggered by the mandate. But it thinks that biofuels have numerous positives.

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

"It has brought great deals of advantages. It has enhanced the security of our diesel