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<br>Climate change: Growing doubts over chip fat [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889)<br> |
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<br>21 April 2021<br> |
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<br>remarks<br> |
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<br>354 Comments<br> |
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<br>New research concerns the ecological impact of rising imports of used cooking oil (UCO) into the UK and Europe.<br> |
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<br>Chip fat and other oils are considered waste, so when they are used to make [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb) it conserves carbon emissions by displacing fossil oil.<br> |
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<br>But such is the demand across Europe that imports now [represent majority](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) of the UCO that's made into fuel.<br> |
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<br>According to the study, external, there's no chance to prove these imports are sustainable.<br> |
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<br>Without any screening of what's coming in, experts think it is likewise ripe for scams.<br> |
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<br>Used cooking oil imports may boost deforestation<br> |
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<br>Consumers present 'growing hazard' to tropical forests<br> |
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<br>Reducing emissions from [transportation](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) is showing to be among the toughest difficulties for [federal governments](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) all over the world.<br> |
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<br>They've encouraged using biofuels as an important methods of [suppressing carbon](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) from vehicles and lorries.<br> |
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<br>[Biofuels](https://www.google.com/search?kgmid=/m/0cqd_rb) are usually a mix of nonrenewable fuel source and oil made from plants or [vegetables](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053).<br> |
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<br>The truth that these crops can be re-grown and absorb more CO2 indicates they counteract the carbon emitted when utilized in engines.<br> |
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<br>Soy and palm oil were as soon as commonly utilized as parts of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) however this practice has actually been extensively rejected because it encourages logging.<br> |
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<br>So for the last decade or so, making use of utilized cooking oil has actually [expanded enormously](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) as an [alternative](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) [feedstock](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) for fuel.<br> |
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<br>[Chip fat](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) and other [waste oils](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) have actually become a crucial element of with an effective market springing up throughout Europe to gather and process the product.<br> |
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<br>But with the amount of [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) made from UCO increasing by around 40% every year since 2014, there just isn't adequate chip fat to walk around.<br> |
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<br>According to a report from the project group Transport & Environment, external, majority of the UCO utilized in Europe is imported.<br> |
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<br>Their study recommends this is extremely bothersome when it pertains to influence on the environment.<br> |
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<br>While UCO is thought about a waste product in the UK, in China, [Indonesia](https://www.crunchbase.com/organization/mission-newenergy) and Malaysia it has long been used to feed animals. The report raises the question of what individuals in these countries are changing the UCO with, when it is exported.<br> |
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<br>In 2019, [Malaysia exported](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) 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 likely to be comparable.<br> |
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<br>With a population of around 33 million, that's close to three litres per head of used oil that's collected and exported to the UK and Ireland alone.<br> |
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<br>By contrast, Thailand, which has a population of 70 million individuals, handled to collect around five million litres of UCO in 2019.<br> |
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<br>"Because we are buying it, they have actually less used cooking oil to utilize on the things that they were previously using it for," said Greg Archer with Transport & Environment.<br> |
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<br>"And they're just buying more virgin oil and that virgin oil is mostly palm oil, since that's the most inexpensive oil offered.<br> |
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<br>"So indirectly, we're simply encouraging more [logging](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) in Southeast Asia."<br> |
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<br>Another major problem with UCO is the suspicion of fraud.<br> |
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<br>Because of demand from Europe, the price of UCO is frequently greater than palm oil. The worry is that some dishonest traders are merely diluting deliveries of UCO with palm.<br> |
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<br>As oils of various types are blended in bulk for transportation, and no screening of the products is carried out, some professionals think scams is rife.<br> |
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<br>The suggestion of fraud anywhere along the chain of supply is declined by the European Waste-to-Advanced Biofuels Association (EWABA), who say there are robust accreditation plans in location.<br> |
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<br>"It is commonly known that the European Commission has taken appropriate actions to entirely suppress unsound market practices in [biofuel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) markets," stated Angel Alberdi, EWABA's secretary general.<br> |
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<br>He says a new database being developed by the EU will guarantee that trading, certification and sustainability data on all bio-liquids will need to be signed up.<br> |
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<br>"The combination of modified certification plans and the pan-EU track and trace database will [guarantee](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) that no sustainability concerns emerge in the entire [biofuels](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) and bio-liquids supply chain," he told BBC News.<br> |
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<br>Others in the field are worried that the database concept, which was first mooted in 2018, might not be efficient in stemming suspected fraud.<br> |
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<br>The report from Transport & Environment points out that with shipping and air travel wanting to decarbonise by utilizing biofuels, need for UCO might double over the next decade.<br> |
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<br>"Rising the demand beyond sustainable supply levels would increase these concerns, and risks of utilizing 'phony' UCO, potentially leading to indirect effects such as logging."<br> |
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<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br> |
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<br>Related subjects<br> |
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<br>COP26<br> |
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<br>Paris environment arrangement<br> |
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<br>Climate<br> |
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