Add Climate Change: Growing Doubts Over Chip Fat Biofuel

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<br> change: Growing doubts over chip fat biofuel<br>
<br>21 April 2021<br>
<br>comments<br>
<br>354 Comments<br>
<br>New research concerns the environmental impact of increasing imports of used cooking oil (UCO) into the UK and Europe.<br>
<br>Chip fat and other oils are considered waste, so when they are used to make [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) it conserves carbon emissions by displacing fossil oil.<br>
<br>But such is the need throughout Europe that [imports](https://www.pinterest.com.au/missionnewenergy/) now [account](https://pitchbook.com/profiles/company/51278-86) for over half of the UCO that's made into fuel.<br>
<br>According to the study, external, there's no chance to show these imports are sustainable.<br>
<br>With no screening of what's can be found in, [professionals](https://www.crunchbase.com/organization/mission-newenergy) believe it is also ripe for fraud.<br>
<br>Used cooking oil imports might increase deforestation<br>
<br>Consumers present 'growing threat' to tropical forests<br>
<br>Reducing emissions from transport is [proving](https://www.crunchbase.com/organization/mission-newenergy) to be among the hardest difficulties for governments all over the world.<br>
<br>They have actually encouraged making use of biofuels as an essential ways of suppressing carbon from cars and trucks and lorries.<br>
<br>Biofuels are [typically](https://www.businessnews.com.au/Company/Mission-NewEnergy) a blend of nonrenewable fuel source and oil made from plants or vegetables.<br>
<br>The fact that these crops can be [re-grown](https://www.google.com/search?kgmid=/m/0cqd_rb) and absorb more CO2 suggests they counteract the carbon emitted when utilized in engines.<br>
<br>Soy and palm oil were once widely used as parts of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) but this practice has been extensively rejected because it encourages logging.<br>
<br>So for the last years or so, making use of utilized cooking oil has expanded enormously as an alternative feedstock for fuel.<br>
<br>Chip fat and other waste oils have ended up being an essential element of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) with an effective market emerging across Europe to gather and [process](https://www.bloomberg.com/profile/company/MNELF:US) the item.<br>
<br>But with the amount of [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) made from UCO increasing by around 40% every year given that 2014, there just isn't enough chip fat to walk around.<br>
<br>According to a report from the campaign group Transport & Environment, external, more than half of the [UCO utilized](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) in Europe is imported.<br>
<br>Their study recommends this is extremely problematic when it comes to effect on the environment.<br>
<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 the question of what individuals in these nations are changing the UCO with, when it is [exported](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048).<br>
<br>In 2019, Malaysia exported 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European countries aren't readily available but the flow of UCO is most likely to be similar.<br>
<br>With a population of around 33 million, that's close to three litres per head of utilized oil that's [gathered](https://pitchbook.com/profiles/company/51278-86) and exported to the UK and [Ireland](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) alone.<br>
<br>By comparison, Thailand, which has a [population](https://www.google.com/search?kgmid=/m/0cqd_rb) of 70 million individuals, handled to gather around 5 million litres of UCO in 2019.<br>
<br>"Because we are purchasing it, they have less used cooking oil to utilize on the important things that they were formerly utilizing it for," stated Greg Archer with Transport & Environment.<br>
<br>"And they're just purchasing more virgin oil and that virgin oil is mainly palm oil, because that's the least expensive oil available.<br>
<br>"So indirectly, we're just motivating more [deforestation](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) in Southeast Asia."<br>
<br>Another major issue with UCO is the suspicion of fraud.<br>
<br>Because of demand from Europe, the cost of UCO is typically greater than palm oil. The concern is that some dishonest traders are simply diluting shipments of UCO with palm.<br>
<br>As oils of different types are mixed in bulk for transport, and no testing of the materials is brought out, some professionals think fraud is swarming.<br>
<br>The suggestion of fraud anywhere along the chain of supply is rejected by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust accreditation schemes in location.<br>
<br>"It is widely understood that the European Commission has actually taken pertinent actions to entirely suppress unsound market practices in [biofuel](https://stocktwits.com/symbol/MNEL) markets," said Angel Alberdi, EWABA's secretary general.<br>
<br>He says a brand-new database being developed by the EU will make sure that trading, accreditation and sustainability data on all bio-liquids will need to be signed up.<br>
<br>"The combination of revised certification schemes and the [pan-EU track](https://www.bloomberg.com/profile/company/MNELF:US) and trace database will guarantee that no sustainability concerns arise in the entire biofuels and [bio-liquids supply](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) chain," he told BBC News.<br>
<br>Others in the field are worried that the database concept, which was first mooted in 2018, may not work in stemming suspected scams.<br>
<br>The report from Transport & Environment points out that with shipping and air travel aiming to decarbonise by utilizing biofuels, need for UCO might double over the next decade.<br>
<br>"Rising the demand beyond sustainable supply levels would increase these issues, and risks of utilizing 'phony' UCO, possibly [leading](https://forest500.org/rankings/companies/mission-newenergy-limited) to indirect effects such as logging."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related subjects<br>
<br>COP26<br>
<br>Paris environment agreement<br>
<br>Climate<br>