Biofuels: 'Irrational' and 'even 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 dependence on sustainable liquid fuels will likewise increase food prices.

The author states that biodiesel made from vegetable oil was worse for the environment than nonrenewable fuel sources.

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

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

Deep fried fuel

But research brought out for Chatham House says that reaching the 5% level implies that UK vehicle drivers will need to pay an additional ₤ 460m a year since of the greater cost of fuel at the pump and from filling regularly as biofuels have a lower energy material.

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

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

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

The EU biofuel requireds are likewise having extremely distorting effects in the marketplace. Because used cooking oil is considered among the most sustainable kinds of biodiesel, the rate 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 incentive to purchase refined palm oil, cook a chip in it to turn it into used cooking oil and after that sell it at profit,"

"It is crazy but the rewards are there."

There are also worries that taking EU land out of production to grow rapeseed oil in specific is developing more environment issues than it . The more fuel of this type that is put into vehicles the bigger the deficit produced in the edible oils market. This had actually lead to 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 in fact result worldwide in more emissions than you would obtain from utilizing diesel in the first location," said Rob Bailey.

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

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external across the EU, said it was aware of the issues triggered by the required. But it thinks that biofuels have numerous 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 brought great deals of benefits. It has improved the security of our diesel