Add Climate Change: Growing Doubts Over Chip Fat Biofuel

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<br>Climate change: Growing doubts over chip fat [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html)<br>
<br>21 April 2021<br>
<br>remarks<br>
<br>354 Comments<br>
<br>New research study 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 considered waste, so when they are used to make [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) it conserves carbon emissions by displacing fossil oil.<br>
<br>But such is the demand across Europe that imports now account for over half of the UCO that's made into fuel.<br>
<br>According to the study, external, there's no chance to prove these imports are sustainable.<br>
<br>With no screening of what's being available in, [specialists](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) think it is likewise ripe for scams.<br>
<br>Used cooking oil imports may enhance logging<br>
<br>Consumers present ['growing risk'](https://www.businessnews.com.au/Company/Mission-NewEnergy) to tropical forests<br>
<br>Reducing emissions from transportation is showing to be one of the toughest difficulties for governments all over the world.<br>
<br>They have actually motivated the usage of biofuels as an important methods of suppressing carbon from cars and trucks.<br>
<br>[Biofuels](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) are usually a mix of nonrenewable fuel source and oil made from plants or veggies.<br>
<br>The reality that these crops can be re-grown and take in more CO2 suggests they counteract the carbon emitted when used in engines.<br>
<br>Soy and [palm oil](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) were as soon as commonly used as parts of [biodiesel](https://www.bloomberg.com/profile/company/MNELF:US) but this practice has been widely [challenged](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) because it motivates deforestation.<br>
<br>So for the last years approximately, using utilized cooking oil has broadened massively as an alternative feedstock for fuel.<br>
<br>[Chip fat](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) and other [waste oils](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) have ended up being a crucial part of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) with an efficient industry [springing](https://stocktwits.com/symbol/MNEL) up across Europe to collect and process the item.<br>
<br>But with the quantity of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) made from [UCO increasing](https://forest500.org/rankings/companies/mission-newenergy-limited) by around 40% every year given that 2014, there just isn't enough chip fat to walk around.<br>
<br>According to a report from the campaign group Transport & Environment, external, more than half of the UCO used in Europe is imported.<br>
<br>Their research study suggests this is highly bothersome when it pertains to effect on the environment.<br>
<br>While UCO is considered a waste material in the UK, in China, Indonesia and Malaysia it has long been used to feed animals. The report raises the [concern](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) of what people in these countries are changing the UCO with, when it is exported.<br>
<br>In 2019, [Malaysia exported](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European nations aren't available however the circulation of UCO is most likely to be comparable.<br>
<br>With a 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 people, managed to collect around five million litres of UCO in 2019.<br>
<br>"Because we are purchasing it, they have less used cooking oil to utilize on the things that they were formerly utilizing it for," said Greg Archer with Transport & Environment.<br>
<br>"And they're simply purchasing more virgin oil which virgin oil is largely palm oil, since that's the cheapest oil readily available.<br>
<br>"So indirectly, we're simply motivating more logging in Southeast Asia."<br>
<br>Another significant issue with UCO is the suspicion of scams.<br>
<br>Because of demand from Europe, the rate of UCO is often greater than palm oil. The concern is that some unethical traders are merely diluting shipments of UCO with palm.<br>
<br>As oils of various types are mixed in bulk for transportation, and no testing of the materials is brought out, some experts think fraud is swarming.<br>
<br>The suggestion of fraud anywhere along the chain of supply is turned down by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust certification plans in place.<br>
<br>"It is commonly known that the European Commission has actually taken appropriate steps to entirely curb unsound market practices in [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) markets," said Angel Alberdi, EWABA's secretary general.<br>
<br>He says a new database being developed by the EU will guarantee that trading, accreditation and sustainability data on all bio-liquids will need to be signed up.<br>
<br>"The mix of modified certification schemes and the pan-EU track and trace database will ensure that no sustainability concerns arise in the entire biofuels and bio-liquids supply chain," he told BBC News.<br>
<br>Others in the field are worried that the database idea, which was first mooted in 2018, might not be effective in stemming thought fraud.<br>
<br>The report from Transport & Environment points out that with shipping and air travel looking to decarbonise by using biofuels, need for UCO might double over the next years.<br>
<br>"Rising the demand beyond [sustainable supply](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) levels would [increase](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) these issues, and risks of [utilizing 'fake'](https://www.google.com/search?kgmid=/m/0cqd_rb) UCO, possibly leading to indirect impacts such as [logging](https://www.google.com/search?kgmid=/m/0cqd_rb)."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related topics<br>
<br>COP26<br>
<br>Paris climate agreement<br>
<br>Climate<br>