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

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

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

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

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

Since 2008, the UK has needed fuel suppliers to add a growing percentage of sustainable products into the petrol and diesel they supply. 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 need to pay an extra ₤ 460m a year due to the fact that of the greater cost of fuel at the pump and from filling more typically as biofuels have a lower energy content.

The report say that if the UK is to satisfy its responsibilities to EU energy targets the cost to motorists is most likely to increase to ₤ 1.3 bn per year by 2020.

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

"Biofuels increase expenses and they are a very costly way to minimize carbon emissions," he said.

The EU biofuel requireds are also having extremely distorting impacts in the marketplace. Because used cooking oil is regarded as among the most sustainable types of biodiesel, the rate for it has risen quickly. Rob Bailey states that towards completion of 2012 it was more expensive than refined palm oil.

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

"It is crazy but the rewards exist."

There are also worries that taking EU land out of production to grow rapeseed oil in particular is producing more environment issues than it resolves. The more fuel of this type that is put into vehicles the bigger the deficit developed in the edible oils market. This had actually caused increased imports of palm oil from Indonesia, typically produced on deforested land.

"Once you take into consideration these indirect impacts, biofuels made from vegetable oils in fact result worldwide in more emissions than you would receive from using diesel in the first location," said Rob Bailey.

"Plus you are asking vehicle drivers to pay more for the fuel - it makes no sense, it is an entirely illogical method."

Biofuel benefits

The European Biodiesel Board (EBB), which represents the market, external across the EU, stated it knew the issues brought on by the mandate. But it thinks that biofuels have lots of positives.

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

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