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

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

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

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 make up 5% of the UK's transportation fuel from today.

Since 2008, the UK has actually needed fuel providers to add a growing proportion of sustainable products into the gas and diesel they provide. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research carried out for Chatham House says that reaching the 5% level suggests that UK motorists will need to pay an extra ₤ 460m a year because of the greater 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 meet its responsibilities to EU energy targets the cost to vehicle drivers is most likely to increase to ₤ 1.3 bn per year by 2020.

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

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

The EU biofuel mandates are also having hugely distorting effects in the market. Because utilized cooking oil is considered as one of the most sustainable kinds of biodiesel, the cost for it has increased quickly. Rob Bailey states that towards the end of 2012 it was more pricey than refined palm oil.

"It creates a monetary reward to purchase refined palm oil, cook a chip in it to turn it into utilized cooking oil and then offer it at earnings,"

"It is insane but the incentives exist."

There are likewise worries that taking EU land out of production to grow rapeseed oil in specific is developing more climate issues than it . The more fuel of this type that is put into cars the larger the deficit created in the edible oils market. This had lead to increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you consider these indirect results, biofuels made from vegetable oils really result worldwide in more emissions than you would obtain from using diesel in the very first location," said Rob Bailey.

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

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, said it was aware of the issues triggered by the mandate. But it believes that biofuels have many positives.

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

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