Add Climate Change: Growing Doubts Over Chip Fat Biofuel

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<br>Climate modification: Growing doubts over chip fat [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm)<br>
<br>21 April 2021<br>
<br>remarks<br>
<br>354 Comments<br>
<br>New research study concerns the environmental impact of increasing imports of used 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.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) it conserves carbon emissions by displacing fossil oil.<br>
<br>But such is the need across Europe that imports now [account](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) for over half of the UCO that's made into fuel.<br>
<br>According to the study, external, there's no other way to prove these imports are sustainable.<br>
<br>Without any testing of what's coming in, [professionals](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) believe it is also ripe for fraud.<br>
<br>Used cooking oil [imports](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) might increase deforestation<br>
<br>Consumers position ['growing danger'](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) to tropical forests<br>
<br>Reducing emissions from transport is proving to be among the most difficult obstacles for federal governments all over the world.<br>
<br>They have actually encouraged making use of biofuels as an important ways of [suppressing carbon](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) from cars and trucks and lorries.<br>
<br>Biofuels are generally a mix of [fossil fuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) and oil made from plants or veggies.<br>
<br>The reality that these crops can be re-grown and take in more CO2 they cancel out the carbon discharged when utilized in engines.<br>
<br>Soy and palm oil were as soon as extensively used as elements of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) however this practice has actually been commonly challenged since it encourages deforestation.<br>
<br>So for the last years approximately, the use of utilized cooking oil has actually expanded massively as an [alternative feedstock](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) for fuel.<br>
<br>Chip fat and other waste oils have become an essential component of [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) with a reliable industry [emerging](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) throughout Europe to gather and process the item.<br>
<br>But with the amount of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) made from [UCO increasing](https://pitchbook.com/profiles/company/51278-86) by around 40% every year considering that 2014, there merely isn't enough [chip fat](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) 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 recommends this is extremely problematic when it pertains to influence on the environment.<br>
<br>While UCO is thought about a waste material in the UK, in China, Indonesia and Malaysia it has actually long been utilized to feed animals. 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 however the flow of UCO is most likely to be comparable.<br>
<br>With a population of around 33 million, that's close to 3 litres per head of utilized oil that's gathered and [exported](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) to the UK and Ireland alone.<br>
<br>By comparison, Thailand, which has a population of 70 million individuals, handled to gather around five million litres of UCO in 2019.<br>
<br>"Because we are purchasing it, they have less utilized cooking oil to use on the things that they were formerly using 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 most affordable oil readily available.<br>
<br>"So indirectly, we're [simply motivating](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) more deforestation in Southeast Asia."<br>
<br>Another significant problem with UCO is the suspicion of fraud.<br>
<br>Because of demand from Europe, the price of UCO is typically higher than palm oil. The worry is that some deceitful traders are simply diluting shipments of UCO with palm.<br>
<br>As oils of various types are blended in bulk for transportation, and no screening of the materials is performed, some professionals believe scams 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 location.<br>
<br>"It is widely understood that the European Commission has actually taken relevant actions to completely [curb unsound](https://forest500.org/rankings/companies/mission-newenergy-limited) market practices in [biofuel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) markets," stated Angel Alberdi, EWABA's secretary general.<br>
<br>He states a new database being developed by the EU will ensure that trading, certification and sustainability data on all bio-liquids will need to be signed up.<br>
<br>"The combination of revised certification schemes and the pan-EU track and trace database will make sure that no sustainability issues develop in the entire biofuels and [bio-liquids supply](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) chain," he told BBC News.<br>
<br>Others in the field are worried that the database idea, which was very first mooted in 2018, might not be efficient in stemming thought fraud.<br>
<br>The report from Transport & Environment mentions that with shipping and air travel seeking to decarbonise by utilizing biofuels, demand for UCO could double over the next decade.<br>
<br>"Rising the need beyond sustainable supply levels would increase these concerns, and [threats](https://pitchbook.com/profiles/company/51278-86) of utilizing 'phony' UCO, possibly resulting in indirect effects such as logging."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related subjects<br>
<br>COP26<br>
<br>Paris environment contract<br>
<br>Climate<br>