Add Climate Change: Growing Doubts Over Chip Fat Biofuel

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<br>Climate change: Growing doubts over chip fat [biofuel](https://stocktwits.com/symbol/MNEL)<br>
<br>21 April 2021<br>
<br>comments<br>
<br>354 Comments<br>
<br>New research questions the ecological effect of increasing imports of used cooking oil (UCO) into the UK and Europe.<br>
<br>[Chip fat](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) and other oils are thought about waste, so when they are utilized to make [biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) it [saves carbon](https://www.businessnews.com.au/Company/Mission-NewEnergy) emissions by displacing fossil oil.<br>
<br>But such is the demand across Europe that imports now [account](https://www.crunchbase.com/organization/mission-newenergy) for more than half of the UCO that's made into fuel.<br>
<br>According to the study, external, there's no way to show these imports are sustainable.<br>
<br>Without any screening of what's coming in, experts think it is also ripe for scams.<br>
<br>Used cooking oil imports might enhance deforestation<br>
<br>Consumers posture 'growing risk' to tropical forests<br>
<br>[Reducing emissions](https://forest500.org/rankings/companies/mission-newenergy-limited) from transport is proving to be one of the toughest obstacles for federal governments all over the world.<br>
<br>They've encouraged making use of [biofuels](https://www.pinterest.com.au/missionnewenergy/) as an essential means of suppressing carbon from vehicles and [lorries](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html).<br>
<br>Biofuels are generally a mix of fossil fuel and oil made from plants or vegetables.<br>
<br>The fact that these crops can be re-grown and absorb more CO2 means they cancel out the carbon emitted when utilized in engines.<br>
<br>Soy and [palm oil](https://www.businessnews.com.au/Company/Mission-NewEnergy) were once commonly utilized as elements of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) but this practice has actually been extensively discredited since it encourages logging.<br>
<br>So for the last decade approximately, the use of used cooking oil has actually expanded enormously as an for fuel.<br>
<br>Chip fat and other waste oils have actually ended up being a crucial component of [biodiesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) with an efficient market springing up across Europe to collect and [process](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) the item.<br>
<br>But with the [quantity](https://www.pinterest.com.au/missionnewenergy/) of [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) made from UCO increasing by around 40% every year since 2014, there simply isn't enough chip fat to walk around.<br>
<br>According to a report from the [project](https://www.crunchbase.com/organization/mission-newenergy) group Transport & Environment, external, majority of the UCO used in Europe is imported.<br>
<br>Their research study recommends this is extremely bothersome when it pertains to effect on the [environment](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html).<br>
<br>While UCO is thought about a waste product in the UK, in China, Indonesia and Malaysia it has long been used to feed animals. The report raises the question of what people in these countries are changing the UCO with, when it is [exported](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd).<br>
<br>In 2019, [Malaysia exported](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European nations aren't readily available but the circulation of UCO is most likely to be similar.<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 to the UK and Ireland alone.<br>
<br>By contrast, Thailand, which has a population of 70 million individuals, handled to gather around 5 million litres of UCO in 2019.<br>
<br>"Because we are buying it, they have actually less used cooking oil to utilize on the things that they were formerly using it for," said Greg Archer with Transport & Environment.<br>
<br>"And they're just purchasing more virgin oil which virgin oil is mainly palm oil, because that's the cheapest oil offered.<br>
<br>"So indirectly, we're simply encouraging more logging in Southeast Asia."<br>
<br>Another significant issue with UCO is the suspicion of fraud.<br>
<br>Because of need from Europe, the cost of UCO is frequently higher than palm oil. The concern is that some unscrupulous traders are merely watering down shipments of UCO with palm.<br>
<br>As oils of different types are blended in bulk for transport, and no screening of the materials is brought out, some specialists believe fraud is swarming.<br>
<br>The tip 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 plans in place.<br>
<br>"It is extensively understood that the European Commission has taken pertinent steps to entirely curb unsound market practices in [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) markets," stated Angel Alberdi, EWABA's secretary general.<br>
<br>He states a brand-new database being developed by the EU will guarantee that trading, accreditation and sustainability data on all bio-liquids will have to be registered.<br>
<br>"The mix of modified accreditation schemes and the pan-EU track and trace database will make sure that no sustainability issues arise in the whole biofuels and [bio-liquids supply](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) chain," he informed BBC News.<br>
<br>Others in the field are concerned that the database idea, which was first mooted in 2018, may not be effective in stemming thought fraud.<br>
<br>The report from Transport & Environment mentions that with shipping and air travel wanting to decarbonise by utilizing biofuels, demand for UCO could double over the next years.<br>
<br>"Rising the demand beyond sustainable supply levels would increase these issues, and dangers of utilizing 'phony' UCO, potentially [causing](https://www.crunchbase.com/organization/mission-newenergy) indirect effects such as logging."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related subjects<br>
<br>COP26<br>
<br>Paris climate agreement<br>
<br>Climate<br>