Add Climate Change: Growing Doubts Over Chip Fat Biofuel

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<br>Climate modification: Growing doubts over chip fat [biofuel](https://stocktwits.com/symbol/MNEL)<br>
<br>21 April 2021<br>
<br>remarks<br>
<br>354 Comments<br>
<br>New research study concerns the ecological impact of increasing 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 need throughout Europe that imports now [account](https://forest500.org/rankings/companies/mission-newenergy-limited) for more than half of the UCO that's made into fuel.<br>
<br>According to the research study, external, there's no chance to show these imports are sustainable.<br>
<br>Without any screening of what's coming in, experts believe it is also ripe for scams.<br>
<br>Used cooking oil imports may [increase](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) logging<br>
<br>Consumers position ['growing](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) danger' to tropical forests<br>
<br>Reducing emissions from transport is proving to be one of the toughest obstacles for federal governments all over the world.<br>
<br>They've encouraged using biofuels as an important means of curbing carbon from cars and trucks and trucks.<br>
<br>Biofuels are generally a blend of fossil fuel and oil made from plants or veggies.<br>
<br>The reality that these crops can be re-grown and absorb more CO2 means they cancel out the carbon produced when utilized in engines.<br>
<br>Soy and palm oil were as soon as extensively used as parts of [biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) however this [practice](https://forest500.org/rankings/companies/mission-newenergy-limited) has actually been extensively discredited because it encourages logging.<br>
<br>So for the last years approximately, the usage of utilized cooking oil has actually broadened enormously as an feedstock for fuel.<br>
<br>Chip fat and other waste oils have ended up being a key component of [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) with an effective industry [springing](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) up across Europe to collect 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 by around 40% every year given that 2014, there simply isn't sufficient chip fat to walk around.<br>
<br>According to a report from the project group Transport & Environment, external, majority of the UCO utilized in Europe is [imported](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html).<br>
<br>Their research study recommends this is highly bothersome when it concerns effects on the [environment](https://www.investing.com/equities/mission-newenergy-ltd-company-profile).<br>
<br>While UCO is considered a waste material in the UK, in China, [Indonesia](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) and [Malaysia](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) it has actually long been used to feed animals. The report raises the question of what people in these countries are replacing 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 nations aren't offered however the flow of UCO is most likely to be comparable.<br>
<br>With a [population](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) of around 33 million, that's close to 3 litres per head of used oil that's collected and exported to the UK and Ireland alone.<br>
<br>By comparison, Thailand, which has a population of 70 million individuals, handled to [collect](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) around five million litres of UCO in 2019.<br>
<br>"Because we are buying it, they have actually less used cooking oil to use on the things that they were previously using it for," stated Greg Archer with [Transport](https://www.pinterest.com.au/missionnewenergy/) & Environment.<br>
<br>"And they're simply purchasing more virgin oil which virgin oil is mainly palm oil, since that's the most affordable oil offered.<br>
<br>"So indirectly, we're just encouraging more deforestation in Southeast Asia."<br>
<br>Another significant issue with UCO is the suspicion of scams.<br>
<br>Because of demand from Europe, the cost of UCO is frequently greater than palm oil. The concern is that some unethical traders are just watering down shipments of UCO with palm.<br>
<br>As oils of various types are blended in bulk for transport, and no screening of the materials is performed, some specialists believe scams is swarming.<br>
<br>The tip of scams anywhere along the chain of supply is turned down by the European Waste-to-Advanced Biofuels Association (EWABA), who say there are robust certification schemes in place.<br>
<br>"It is extensively known that the European Commission has actually taken appropriate steps to totally curb unsound market [practices](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) in [biofuel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) markets," stated Angel Alberdi, EWABA's secretary general.<br>
<br>He states a brand-new database being established by the EU will guarantee that trading, certification and sustainability information on all bio-liquids will have to be registered.<br>
<br>"The mix of revised accreditation plans and the pan-EU track and trace database will ensure that no sustainability concerns occur 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, may not be reliable in stemming presumed scams.<br>
<br>The report from Transport & Environment points out that with shipping and aviation wanting to decarbonise by utilizing biofuels, need for UCO might double over the next decade.<br>
<br>"Rising the need beyond sustainable supply levels would increase these concerns, and [dangers](https://forest500.org/rankings/companies/mission-newenergy-limited) of using 'phony' UCO, possibly resulting in indirect impacts such as [logging](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)."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related topics<br>
<br>COP26<br>
<br>Paris climate agreement<br>
<br>Climate<br>