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

The UK's "irrational" use of biofuels will cost motorists around ₤ 460 million over the next 12 months, a think tank says.

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

The author states that biodiesel made from vegetable oil 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 providers to include 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, used cooking oil and tallow.

Deep fried fuel

But research carried out for Chatham House states that reaching the 5% level indicates that UK drivers will need to pay an additional ₤ 460m a year because of the greater cost of fuel at the pump and from filling more typically as biofuels have a lower energy content.

The report say that if the UK is to meet its commitments to EU energy targets the cost to drivers is most likely to increase to ₤ 1.3 bn per year by 2020.

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

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

The EU biofuel mandates are also having hugely distorting effects in the marketplace. Because oil is considered one of the most sustainable kinds of biodiesel, the price for it has actually risen quickly. Rob Bailey states that towards the end of 2012 it was more expensive than refined palm oil.

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

"It is crazy however the rewards are there."

There are likewise worries that taking EU land out of production to grow rapeseed oil in specific is producing more environment problems than it fixes. The more fuel of this type that is taken into automobiles the larger the deficit created in the edible oils market. This had resulted in increased imports of palm oil from Indonesia, often 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 utilizing 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 an entirely illogical method."

Biofuel benefits

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

"Blaming biofuels for all the difficulties worldwide is a bit too overstated," stated Isabelle Maurizi, job supervisor at the EBB.

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