Biofuels: 'Irrational' and 'even worse than nonrenewable fuel sources'

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

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

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

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

Since 2008, the UK has actually 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 study brought out for Chatham House says that reaching the 5% level means that UK motorists will have to pay an additional ₤ 460m a year since of the higher cost of fuel at the pump and from filling regularly as biofuels have a lower energy content.

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

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

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

The EU biofuel mandates are likewise having extremely distorting effects in the market. Because utilized cooking oil is considered as among the most sustainable types of biodiesel, the cost for it has actually risen quickly. Rob Bailey says that towards completion of 2012 it was more pricey than refined palm oil.

"It produces a financial incentive to purchase refined palm oil, cook a chip in it to turn it into used cooking oil and then sell it at earnings,"

"It is crazy however the incentives are there."

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

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

"Plus you are asking 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 throughout the EU, said it was conscious of the issues caused by the mandate. But it thinks that biofuels have many positives.

"Blaming biofuels for all the difficulties in the world is a bit too overstated," said Isabelle Maurizi, project supervisor at the EBB.

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