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

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

The author says that biodiesel made from grease was worse for the climate than nonrenewable fuel sources.

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

Since 2008, the UK has required fuel suppliers to include a growing proportion of sustainable products into the petrol and diesel they provide. These biofuels are generally ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research carried out for Chatham House says that reaching the 5% level implies that UK drivers will have to pay an additional ₤ 460m a year since of the greater cost of fuel at the pump and from filling up more frequently as biofuels have a lower energy material.

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

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

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

The EU biofuel mandates are also having hugely distorting impacts in the market. Because utilized cooking oil is considered as one of the most sustainable kinds of biodiesel, the price for it has increased rapidly. Rob Bailey says that towards the end of 2012 it was more costly than refined palm oil.

"It produces a monetary reward to purchase refined palm oil, prepare a chip in it to turn it into used cooking oil and then offer it at earnings,"

"It is crazy but the rewards exist."

There are also stresses that taking EU land out of production to grow rapeseed oil in particular is creating more environment problems than it fixes. The more fuel of this type that is taken into vehicles the bigger the deficit created in the edible oils market. This had lead to increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you consider 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," stated Rob Bailey.

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

Biofuel advantages

The European Biodiesel Board (EBB), which represents the market, external across the EU, stated it was mindful of the problems brought on by the mandate. But it believes that biofuels have many positives.

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

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