Add Climate Change: Growing Doubts Over Chip Fat Biofuel
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<br>Climate change: Growing doubts over chip fat [biofuel](https://www.crunchbase.com/organization/mission-newenergy)<br>
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<br>21 April 2021<br>
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<br>comments<br>
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<br>354 Comments<br>
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<br>New research study questions the environmental effect of increasing imports of used [cooking oil](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) (UCO) into the UK and Europe.<br>
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<br>Chip fat and other oils are thought about waste, so when they are utilized to make [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) it conserves carbon emissions by [displacing fossil](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) oil.<br>
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<br>But such is the need throughout Europe that imports now represent more than half of the UCO that's made into fuel.<br>
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<br>According to the study, external, there's no other way to show these imports are [sustainable](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053).<br>
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<br>Without any testing of what's coming in, [specialists](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) believe it is also ripe for scams.<br>
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<br>Used cooking oil imports may boost logging<br>
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<br>Consumers present 'growing danger' to [tropical](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) forests<br>
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<br>Reducing emissions from transport is proving to be among the toughest difficulties for governments all over the world.<br>
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<br>They have actually encouraged using [biofuels](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) as a crucial means of [suppressing carbon](https://www.pinterest.com.au/missionnewenergy/) from cars and lorries.<br>
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<br> are generally a mix of fossil fuel and oil made from plants or veggies.<br>
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<br>The truth that these crops can be re-grown and take in more CO2 suggests they counteract the carbon emitted when used in engines.<br>
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<br>Soy and palm oil were as soon as extensively used as components of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) but this practice has been commonly challenged because it [encourages deforestation](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053).<br>
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<br>So for the last decade approximately, making use of utilized cooking oil has broadened massively as an alternative feedstock for fuel.<br>
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<br>Chip fat and other waste oils have become a key component of [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) with a reliable industry springing up throughout Europe to collect and [process](https://pitchbook.com/profiles/company/51278-86) the item.<br>
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<br>But with the quantity of [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) made from UCO increasing by around 40% every year considering that 2014, there merely isn't enough chip fat to go around.<br>
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<br>According to a report from the project group Transport & Environment, external, [majority](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) of the UCO utilized in Europe is imported.<br>
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<br>Their research study suggests this is extremely troublesome when it concerns influence on the environment.<br>
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<br>While UCO is considered a waste product in the UK, in China, Indonesia and Malaysia it has actually long been utilized to feed animals. The [report raises](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) the question of what individuals in these nations are replacing the UCO with, when it is exported.<br>
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<br>In 2019, Malaysia exported 90 million litres of UCO to the UK and Ireland. Figures for their [exports](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) to other European countries aren't offered but the flow of UCO is likely to be similar.<br>
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<br>With a population of around 33 million, that's close to three litres per head of used oil that's gathered and exported to the UK and Ireland alone.<br>
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<br>By contrast, Thailand, which has a population of 70 million individuals, managed to collect around 5 million litres of UCO in 2019.<br>
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<br>"Because we are purchasing it, they have less utilized cooking oil to use on the things that they were previously using it for," stated Greg Archer with Transport & Environment.<br>
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<br>"And they're simply buying more virgin oil which virgin oil is mainly palm oil, since that's the most affordable oil offered.<br>
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<br>"So indirectly, we're [simply motivating](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) more [logging](https://www.zoominfo.com/c/mission-newenergy/346542889) in Southeast Asia."<br>
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<br>Another major issue with UCO is the suspicion of scams.<br>
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<br>Because of need from Europe, the cost of UCO is often higher than palm oil. The concern is that some unethical traders are simply diluting deliveries of UCO with palm.<br>
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<br>As oils of various types are mixed in bulk for transportation, and no testing of the products is performed, some professionals think fraud is rife.<br>
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<br>The recommendation of fraud anywhere along the chain of supply is rejected by the European Waste-to-Advanced Biofuels Association (EWABA), who say there are robust certification plans in place.<br>
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<br>"It is [extensively](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) known that the European Commission has actually taken relevant steps to entirely [curb unsound](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) market practices in biofuel markets," said Angel Alberdi, EWABA's secretary general.<br>
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<br>He states a brand-new database being established by the EU will make sure that trading, accreditation and sustainability data on all bio-liquids will have to be registered.<br>
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<br>"The combination of modified certification schemes and the pan-EU track and trace database will guarantee that no sustainability issues occur in the entire biofuels and bio-liquids supply chain," he informed BBC News.<br>
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<br>Others in the field are worried that the database idea, which was first mooted in 2018, may not work in stemming suspected scams.<br>
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<br>The report from Transport & Environment mentions that with shipping and aviation seeking to decarbonise by utilizing biofuels, demand for UCO might double over the next years.<br>
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<br>"Rising the demand beyond sustainable supply levels would increase these issues, and dangers of utilizing 'phony' UCO, potentially resulting in indirect effects such as deforestation."<br>
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<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
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<br>Related subjects<br>
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<br>COP26<br>
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<br>Paris environment contract<br>
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<br>Climate<br>
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