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

The UK's "unreasonable" usage of biofuels will cost motorists 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 rates.

The author states that biodiesel made from grease was worse for the than fossil fuels.

Under EU law, external, biofuels are set to comprise 5% of the UK's transportation fuel from today.

Since 2008, the UK has required fuel providers to include a growing proportion of sustainable products into the gas 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 performed for Chatham House states that reaching the 5% level indicates that UK motorists will need to pay an additional ₤ 460m a year due to the fact that of the greater cost of fuel at the pump and from filling up more frequently as biofuels have a lower energy content.

The report state that if the UK is to satisfy its responsibilities to EU energy targets the expense to drivers is most likely to rise to ₤ 1.3 bn per annum by 2020.

"It is hard to find any good news," Rob Bailey, senior research fellow at Chatham House, told 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 extremely distorting effects in the marketplace. Because used cooking oil is considered one of the most sustainable types of biodiesel, the price for it has risen rapidly. Rob Bailey states that towards completion of 2012 it was more pricey than refined palm oil.

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

"It is crazy but the incentives exist."

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

"Once you consider these indirect effects, biofuels made from vegetable oils in fact result worldwide in more emissions than you would get from using diesel in the first place," said Rob Bailey.

"Plus you are asking motorists to pay more for the fuel - it makes no sense, it is a completely illogical technique."

Biofuel advantages

The European Biodiesel Board (EBB), which represents the market, external throughout the EU, said it understood the issues triggered by the required. But it thinks that biofuels have many positives.

"Blaming biofuels for all the troubles in the world is a bit too overstated," said Isabelle Maurizi, task supervisor at the EBB.

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