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

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

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

The author says that biodiesel made from vegetable oil was worse for the environment than nonrenewable fuel sources.

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 needed fuel suppliers to add a growing percentage of sustainable products into the petrol and diesel they supply. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research brought out for Chatham House states that reaching the 5% level suggests that UK motorists will need to pay an extra ₤ 460m a year since of the higher expense of fuel at the pump and from filling more frequently as biofuels have a lower energy content.

The report say that if the UK is to fulfill its obligations to EU energy targets the cost to drivers is most likely to rise to ₤ 1.3 bn per year by 2020.

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

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

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

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

"It is crazy however the incentives are there."

There are likewise worries that taking EU land out of production to grow rapeseed oil in particular is producing more climate issues than it solves. The more fuel of this type that is taken into vehicles the larger the deficit developed in the edible oils market. This had actually resulted in increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you take into account these indirect impacts, 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 vehicle drivers to pay more for the fuel - it makes no sense, it is an entirely irrational strategy."

Biofuel benefits

The European Biodiesel Board (EBB), which represents the industry, external across the EU, said it knew the issues brought on by the required. But it believes that biofuels have many positives.

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

"It has brought great deals of advantages. It has improved the security of our diesel