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

The UK's "irrational" usage 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 also increase food rates.

The author states that biodiesel made from grease 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 actually needed fuel suppliers to include a growing percentage of sustainable products into the petrol 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 study performed for Chatham House states that reaching the 5% level suggests that UK drivers will have to pay an extra ₤ 460m a year because of the greater cost of fuel at the pump and from filling up more typically as biofuels have a lower energy content.

The report say that if the UK is to satisfy 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, told BBC News.

"Biofuels increase expenses and they are a really expensive method to reduce carbon emissions," he said.

The EU biofuel requireds are also having extremely distorting impacts in the market. Because utilized cooking oil is considered one of the most sustainable types of biodiesel, the rate for it has risen quickly. Rob Bailey says that towards completion of 2012 it was more expensive than refined palm oil.

"It develops a financial reward to purchase refined palm oil, cook a chip in it to turn it into used cooking oil and then sell it at revenue,"

"It is insane but the rewards exist."

There are likewise worries that taking EU land out of production to grow rapeseed oil in specific is developing more environment problems than it resolves. The more fuel of this type that is taken into cars the larger the deficit produced in the edible oils market. This had resulted in increased imports of palm oil from Indonesia, typically produced on deforested land.

"Once you consider these indirect impacts, biofuels made from veggie oils in fact result worldwide in more emissions than you would get from using diesel in the very first location," stated Rob Bailey.

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

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external across the EU, said it knew the problems brought on by the mandate. But it thinks that biofuels have numerous positives.

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

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