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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)
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21 April 2021
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remarks
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354 Comments
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New research study questions the environmental effect of rising imports of utilized cooking oil (UCO) into the UK and Europe.
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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.
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But such is the demand across Europe that imports now account for over half of the UCO that's made into fuel.
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According to the study, external, there's no chance to prove these imports are sustainable.
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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.
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Used cooking oil imports may enhance logging
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Consumers present ['growing risk'](https://www.businessnews.com.au/Company/Mission-NewEnergy) to tropical forests
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Reducing emissions from transportation is showing to be one of the toughest difficulties for governments all over the world.
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They have actually motivated the usage of biofuels as an important methods of suppressing carbon from cars and trucks.
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[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.
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The reality that these crops can be re-grown and take in more CO2 suggests they counteract the carbon emitted when used in engines.
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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.
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So for the last years approximately, using utilized cooking oil has broadened massively as an alternative feedstock for fuel.
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[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.
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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.
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According to a report from the campaign group Transport & Environment, external, more than half of the UCO used in Europe is imported.
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Their research study suggests this is highly bothersome when it pertains to effect on the environment.
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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.
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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.
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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.
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By contrast, Thailand, which has a population of 70 million people, managed to collect around five million litres of UCO in 2019.
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"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.
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"And they're simply purchasing more virgin oil which virgin oil is largely palm oil, since that's the cheapest oil readily available.
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"So indirectly, we're simply motivating more logging in Southeast Asia."
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Another significant issue with UCO is the suspicion of scams.
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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.
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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.
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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.
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"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.
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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.
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"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.
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Others in the field are worried that the database idea, which was first mooted in 2018, might not be effective in stemming thought fraud.
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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.
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"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)."
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Follow Matt on Twitter @mattmcgrathbbc, external.
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Related topics
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COP26
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Paris climate agreement
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Climate
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