Add Climate Change: Growing Doubts Over Chip Fat Biofuel
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<br>Climate modification: Growing doubts over chip fat [biofuel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608)<br>
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<br>21 April 2021<br>
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<br>remarks<br>
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<br>354 Comments<br>
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<br>New research questions the environmental effect of rising imports of utilized cooking oil (UCO) into the UK and Europe.<br>
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<br>Chip fat and other oils are considered waste, so when they are used to make [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) it saves carbon emissions by [displacing fossil](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) oil.<br>
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<br>But such is the demand across Europe that [imports](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) now represent over half of the UCO that's made into fuel.<br>
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<br>According to the research study, external, there's no other way to prove these [imports](https://forest500.org/rankings/companies/mission-newenergy-limited) are sustainable.<br>
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<br>With no screening of what's being available in, professionals believe it is also ripe for scams.<br>
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<br>Used cooking oil [imports](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) might boost deforestation<br>
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<br>Consumers position 'growing threat' to tropical forests<br>
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<br>Reducing emissions from transportation is showing to be one of the hardest obstacles for governments all over the world.<br>
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<br>They have actually motivated using biofuels as an important methods of suppressing carbon from cars and trucks.<br>
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<br>[Biofuels](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) are generally a blend of [fossil fuel](https://pitchbook.com/profiles/company/51278-86) and oil made from plants or veggies.<br>
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<br>The reality that these crops can be re-grown and absorb more CO2 indicates they cancel out the [carbon emitted](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) when used in engines.<br>
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<br>Soy and palm oil were as soon as widely utilized as elements of biodiesel however this [practice](https://pitchbook.com/profiles/company/51278-86) has actually been commonly rejected due to the fact that it motivates deforestation.<br>
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<br>So for the last years or two, making use of used cooking oil has actually expanded as an alternative feedstock for fuel.<br>
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<br>Chip fat and other waste oils have ended up being a crucial part of [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb) with an effective industry [emerging](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) across Europe to collect and process the product.<br>
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<br>But with the amount of [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) made from UCO increasing by around 40% every year because 2014, there just isn't enough chip fat to go around.<br>
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<br>According to a report from the project group Transport & Environment, external, majority of the UCO utilized in Europe is imported.<br>
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<br>Their research study suggests this is extremely problematic when it comes to impacts on the [environment](https://pitchbook.com/profiles/company/51278-86).<br>
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<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 concern of what people in these nations are changing the UCO with, when it is [exported](https://www.investing.com/equities/mission-newenergy-ltd-company-profile).<br>
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<br>In 2019, [Malaysia exported](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) 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 most likely to be similar.<br>
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<br>With a population of around 33 million, that's close to three litres per head of used oil that's gathered and exported to the UK and Ireland alone.<br>
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<br>By comparison, Thailand, which has a population of 70 million people, handled to collect around 5 million litres of UCO in 2019.<br>
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<br>"Because we are purchasing it, they have less utilized cooking oil to utilize on the important things that they were formerly utilizing it for," [stated Greg](https://www.bloomberg.com/profile/company/MNELF:US) Archer with Transport & Environment.<br>
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<br>"And they're just buying more virgin oil which virgin oil is mainly palm oil, since that's the cheapest oil available.<br>
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<br>"So indirectly, we're just encouraging more [logging](https://www.crunchbase.com/organization/mission-newenergy) in Southeast Asia."<br>
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<br>Another major problem with UCO is the suspicion of fraud.<br>
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<br>Because of need from Europe, the price of UCO is typically greater than palm oil. The concern is that some deceitful traders are merely watering down deliveries of UCO with palm.<br>
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<br>As oils of various types are blended in bulk for transportation, and no testing of the materials is performed, some professionals think fraud is swarming.<br>
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<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 accreditation schemes in place.<br>
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<br>"It is commonly known that the European Commission has taken appropriate actions to totally curb unsound market practices in [biofuel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) markets," said Angel Alberdi, EWABA's secretary general.<br>
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<br>He says a new database being established by the EU will ensure that trading, accreditation and sustainability information on all bio-liquids will have to be registered.<br>
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<br>"The combination of modified accreditation plans and the pan-EU track and trace database will ensure that no sustainability issues occur in the entire biofuels and bio-liquids supply chain," he told BBC News.<br>
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<br>Others in the field are worried that the database idea, which was first mooted in 2018, might not work in stemming presumed fraud.<br>
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<br>The report from Transport & Environment explains that with shipping and aviation aiming to decarbonise by utilizing biofuels, demand for UCO might double over the next years.<br>
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<br>"Rising the need beyond [sustainable supply](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) levels would increase these concerns, and threats of [utilizing 'fake'](https://pitchbook.com/profiles/company/51278-86) UCO, potentially leading to indirect impacts such as logging."<br>
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<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
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<br>Related subjects<br>
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<br>COP26<br>
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<br>Paris climate contract<br>
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<br>Climate<br>
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