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Add Climate Change: Growing Doubts Over Chip Fat Biofuel

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<br>Climate modification: [Growing doubts](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) 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>comments<br>
<br>354 Comments<br>
<br>New research study [questions](https://pitchbook.com/profiles/company/51278-86) the [ecological](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) impact of rising imports of utilized cooking oil (UCO) into the UK and Europe.<br>
<br>Chip fat and other oils are thought about waste, so when they are used to make [biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) it saves carbon by [displacing fossil](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) oil.<br>
<br>But such is the demand throughout Europe that imports now represent majority of the UCO that's made into fuel.<br>
<br>According to the research study, external, there's no way to prove these imports are sustainable.<br>
<br>With no screening of what's coming in, specialists think it is likewise ripe for scams.<br>
<br>Used cooking oil imports may improve logging<br>
<br>[Consumers posture](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) 'growing threat' to tropical forests<br>
<br>Reducing emissions from transport is showing to be one of the toughest challenges for federal governments all over the world.<br>
<br>They've motivated using biofuels as a crucial methods of curbing carbon from cars and trucks and lorries.<br>
<br>[Biofuels](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) are normally a blend of [nonrenewable fuel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) source and oil made from plants or vegetables.<br>
<br>The reality that these crops can be re-grown and absorb more CO2 suggests they cancel out the carbon given off when used in engines.<br>
<br>Soy and palm oil were when widely used as elements of [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) however this practice has actually been widely challenged since it motivates logging.<br>
<br>So for the last years or two, making use of utilized cooking oil has actually expanded enormously as an alternative feedstock for fuel.<br>
<br>Chip fat and other waste oils have become a key component of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) with a reliable market springing up throughout Europe to collect and process the item.<br>
<br>But with the amount of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) made from UCO increasing by around 40% every year considering that 2014, there simply isn't sufficient chip fat to walk around.<br>
<br>According to a report from the campaign group [Transport](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) & Environment, external, more than half of the UCO used in Europe is imported.<br>
<br>Their research study suggests this is extremely problematic when it concerns influence on the [environment](https://www.businessnews.com.au/Company/Mission-NewEnergy).<br>
<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](https://www.crunchbase.com/organization/mission-newenergy). The report raises the question of what individuals in these countries are changing the UCO with, when it is exported.<br>
<br>In 2019, Malaysia exported 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European countries aren't readily available but the flow of UCO is most likely to be [comparable](https://stocktwits.com/symbol/MNEL).<br>
<br>With a population of around 33 million, that's close to three litres per head of utilized oil that's gathered and exported to the UK and Ireland alone.<br>
<br>By comparison, Thailand, which has a population of 70 million individuals, managed to collect around 5 million litres of UCO in 2019.<br>
<br>"Because we are buying it, they have actually less utilized cooking oil to use on the things that they were previously 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 available.<br>
<br>"So indirectly, we're just encouraging more logging in Southeast Asia."<br>
<br>Another major issue with UCO is the suspicion of fraud.<br>
<br>Because of demand from Europe, the price of UCO is often greater than palm oil. The concern is that some deceitful traders are merely diluting shipments of UCO with palm.<br>
<br>As oils of various types are mixed in bulk for transportation, and no screening of the products is carried out, some specialists believe fraud is rife.<br>
<br>The suggestion of fraud anywhere along the chain of supply is rejected by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust certification schemes in location.<br>
<br>"It is widely understood that the European Commission has actually taken [pertinent](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) steps to totally curb unsound market practices in [biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) markets," said Angel Alberdi, EWABA's secretary general.<br>
<br>He states a brand-new database being established by the EU will guarantee that trading, accreditation and sustainability information on all bio-liquids will have to be signed up.<br>
<br>"The combination of modified certification plans and the pan-EU track and trace database will guarantee that no sustainability problems arise in the entire [biofuels](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) and bio-liquids supply chain," he informed BBC News.<br>
<br>Others in the field are worried that the database concept, which was first mooted in 2018, might not work in stemming presumed scams.<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](https://www.google.com/search?kgmid=/m/0cqd_rb) these issues, and dangers of using 'phony' UCO, possibly [causing indirect](https://www.zoominfo.com/c/mission-newenergy/346542889) impacts such as logging."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related subjects<br>
<br>COP26<br>
<br>Paris climate contract<br>
<br>Climate<br>