Biofuels: 'Irrational' and 'worse than nonrenewable fuel sources'

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

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

The author states that biodiesel made from veggie oil was even worse for the climate than nonrenewable fuel sources.

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

Since 2008, the UK has required fuel providers to include a growing proportion of sustainable materials into the gas and diesel they provide. These biofuels are generally ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research carried out for Chatham House says that reaching the 5% level means that UK motorists will need to pay an additional ₤ 460m a year due to the fact that of the higher expense of fuel at the pump and from filling more frequently as biofuels have a lower energy content.

The report state that if the UK is to satisfy its responsibilities to EU energy targets the cost to motorists is most likely to rise to ₤ 1.3 bn per year by 2020.

"It is hard to find any excellent news," Rob Bailey, senior research study fellow at Chatham House, informed BBC News.

"Biofuels increase costs and they are a really expensive way to lower carbon emissions," he said.

The EU biofuel requireds are also having extremely distorting results in the market. Because used cooking oil is regarded as one of the most sustainable types of biodiesel, the rate for it has actually increased rapidly. Rob Bailey says that towards the end of 2012 it was more pricey than refined palm oil.

"It creates a financial reward to purchase refined palm oil, cook a chip in it to turn it into utilized cooking oil and after that sell it at earnings,"

"It is insane however the rewards exist."

There are likewise worries that taking EU land out of production to grow rapeseed oil in particular is creating more problems than it fixes. The more fuel of this type that is taken into cars the larger the deficit created in the edible oils market. This had resulted in increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you take into consideration these indirect effects, biofuels made from veggie oils actually result worldwide in more emissions than you would get from utilizing diesel in the very first place," stated Rob Bailey.

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

Biofuel advantages

The European Biodiesel Board (EBB), which represents the industry, external across the EU, said it knew the issues triggered by the required. But it believes that biofuels have lots of positives.

"Blaming biofuels for all the difficulties in the world is a bit too overstated," said Isabelle Maurizi, project manager at the EBB.

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