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>
<br>21 April 2021<br>
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<br>354 Comments<br>
<br>New research questions the environmental effect of rising imports of utilized cooking oil (UCO) into the UK and Europe.<br>
<br>Chip fat and other oils are thought about waste, so when they are utilized to make [biodiesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) it conserves carbon emissions by displacing fossil oil.<br>
<br>But such is the demand across Europe that imports now account for majority of the UCO that's made into fuel.<br>
<br>According to the research study, external, there's no other way to prove these imports are [sustainable](https://www.zoominfo.com/c/mission-newenergy/346542889).<br>
<br>Without any testing of what's being available in, [experts](https://www.google.com/search?kgmid=/m/0cqd_rb) think it is likewise ripe for fraud.<br>
<br>Used cooking oil imports might increase logging<br>
<br>[Consumers posture](https://www.businessnews.com.au/Company/Mission-NewEnergy) 'growing hazard' to tropical forests<br>
<br>Reducing emissions from transportation is proving to be one of the most difficult obstacles for federal governments all over the world.<br>
<br>They've encouraged making use of [biofuels](https://www.zoominfo.com/c/mission-newenergy/346542889) as an important means of curbing carbon from cars and lorries.<br>
<br>Biofuels are typically a mix of fossil fuel and oil made from plants or veggies.<br>
<br>The [reality](https://www.bloomberg.com/profile/company/MNELF:US) that these crops can be re-grown and soak up more CO2 indicates they counteract the carbon released when utilized in engines.<br>
<br>Soy and palm oil were once widely used as elements of [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb) but this practice has been commonly discredited because it encourages [deforestation](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/).<br>
<br>So for the last decade or two, making use of utilized cooking oil has expanded massively as an alternative feedstock for fuel.<br>
<br>[Chip fat](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) and other waste oils have actually ended up being a crucial part of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) with an efficient market emerging throughout Europe to [collect](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) and process the product.<br>
<br>But with the quantity of biodiesel made from UCO increasing by around 40% every year since 2014, there just isn't sufficient chip fat to walk around.<br>
<br>According to a report from the campaign group [Transport](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) & Environment, external, over half of the UCO used in Europe is imported.<br>
<br>Their research study recommends this is highly troublesome when it comes to impacts on the environment.<br>
<br>While UCO is thought about a waste product in the UK, in China, Indonesia and Malaysia it has actually long been used to feed animals. The report raises the question of what individuals in these countries are [changing](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) the UCO with, when it is exported.<br>
<br>In 2019, [Malaysia exported](https://www.google.com/search?kgmid=/m/0cqd_rb) 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European nations aren't offered but the circulation of UCO is likely to be comparable.<br>
<br>With a population of around 33 million, that's close to 3 litres per head of used oil that's gathered and [exported](https://www.bloomberg.com/profile/company/MNELF:US) to the UK and Ireland alone.<br>
<br>By comparison, Thailand, which has a population of 70 million individuals, handled to around five million litres of UCO in 2019.<br>
<br>"Because we are buying it, they have less used cooking oil to use on the important things that they were previously using it for," [stated Greg](https://www.crunchbase.com/organization/mission-newenergy) Archer with Transport & Environment.<br>
<br>"And they're just purchasing more virgin oil and that virgin oil is largely palm oil, since that's the cheapest oil available.<br>
<br>"So indirectly, we're just [encouraging](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) more logging in Southeast Asia."<br>
<br>Another significant problem with UCO is the suspicion of fraud.<br>
<br>Because of need from Europe, the cost of UCO is frequently greater than palm oil. The worry is that some unscrupulous traders are just watering down shipments of UCO with palm.<br>
<br>As oils of various types are blended in bulk for transportation, and no screening of the products is performed, some specialists believe fraud is rife.<br>
<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 schemes in place.<br>
<br>"It is extensively understood that the European Commission has taken relevant actions to totally [curb unsound](https://www.bloomberg.com/profile/company/MNELF:US) market practices in [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) markets," said Angel Alberdi, EWABA's secretary general.<br>
<br>He states a brand-new database being established by the EU will ensure that trading, accreditation and sustainability information on all bio-liquids will need to be registered.<br>
<br>"The mix of revised accreditation plans and the pan-EU track and trace database will ensure that no sustainability concerns occur in the whole biofuels and [bio-liquids supply](https://pitchbook.com/profiles/company/51278-86) chain," he informed BBC News.<br>
<br>Others in the field are worried that the database idea, which was very first mooted in 2018, might not work in stemming believed fraud.<br>
<br>The report from Transport & Environment explains that with shipping and air travel wanting to decarbonise by using biofuels, need for UCO might double over the next years.<br>
<br>"Rising the demand beyond sustainable supply levels would increase these concerns, and threats of utilizing 'fake' UCO, potentially resulting in indirect effects such as deforestation."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related topics<br>
<br>COP26<br>
<br>Paris climate contract<br>
<br>Climate<br>