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 states.

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

The author says that biodiesel made from vegetable oil was even worse for the environment 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 needed fuel providers to include a growing percentage of sustainable materials into the gas and diesel they supply. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

But research study performed for Chatham House states that reaching the 5% level implies that UK vehicle drivers will have to pay an extra ₤ 460m a year since of the greater expense of fuel at the pump and from filling up more frequently as biofuels have a lower energy material.

The report state that if the UK is to meet its responsibilities to EU energy targets the cost to drivers is likely to to ₤ 1.3 bn per annum by 2020.

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

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

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

"It develops a financial incentive to buy refined palm oil, prepare a chip in it to turn it into utilized cooking oil and then sell it at profit,"

"It is crazy however the incentives exist."

There are likewise stresses that taking EU land out of production to grow rapeseed oil in particular is creating more environment issues than it fixes. The more fuel of this type that is taken into automobiles the larger the deficit produced in the edible oils market. This had lead to increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you take into consideration these indirect effects, biofuels made from veggie oils actually result worldwide in more emissions than you would get from utilizing diesel in the very first place," said Rob Bailey.

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

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, stated it understood the problems triggered by the required. But it believes that biofuels have lots of positives.

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

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