1 Biofuels: 'Irrational' and 'even Worse than Nonrenewable Fuel Source'
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Biofuels: 'Irrational' and 'worse than nonrenewable fuel sources'

The UK's "illogical" use of biofuels will cost drivers around ₤ 460 million over the next 12 months, a think tank states.

A report by Chatham House, external states the growing dependence on sustainable liquid fuels will also increase food prices.

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

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

Since 2008, the UK has needed fuel providers to add a growing percentage of sustainable materials into the fuel and diesel they provide. These biofuels are mainly ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research brought out for Chatham House says that reaching the 5% level indicates that UK motorists will have to pay an extra ₤ 460m a year due to the fact that of the greater expense 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 commitments to EU energy targets the cost to is likely to rise to ₤ 1.3 bn per annum by 2020.

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

"Biofuels increase expenses and they are a very pricey 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 types of biodiesel, the rate for it has actually risen quickly. Rob Bailey says that towards the end of 2012 it was more pricey than refined palm oil.

"It produces a financial incentive to buy refined palm oil, prepare a chip in it to turn it into used cooking oil and then offer it at earnings,"

"It is crazy however the rewards exist."

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

"Once you take into account these indirect effects, biofuels made from veggie oils in fact result worldwide in more emissions than you would receive from utilizing diesel in the very first place," said Rob Bailey.

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

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, said it understood the issues caused by the required. But it believes that biofuels have numerous positives.

"Blaming biofuels for all the problems on the planet is a bit too overstated," stated Isabelle Maurizi, project manager at the EBB.

"It has brought lots of benefits. It has actually improved the security of our diesel