Add Climate Change: Growing Doubts Over Chip Fat Biofuel

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<br>Climate modification: Growing doubts over chip fat [biofuel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price)<br>
<br>21 April 2021<br>
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<br>354 Comments<br>
<br>New research questions the ecological impact of rising imports of utilized [cooking oil](https://www.businessnews.com.au/Company/Mission-NewEnergy) (UCO) into the UK and Europe.<br>
<br>[Chip fat](https://www.pinterest.com.au/missionnewenergy/) and other oils are considered waste, so when they are used to make [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) it conserves carbon emissions by displacing fossil oil.<br>
<br>But such is the demand throughout Europe that imports now account for majority of the UCO that's made into fuel.<br>
<br>According to the study, external, there's no chance to show these imports are sustainable.<br>
<br>Without any screening of what's coming in, experts think it is also ripe for fraud.<br>
<br>Used cooking oil imports might increase logging<br>
<br>Consumers position 'growing risk' to tropical forests<br>
<br>Reducing emissions from transportation is proving to be among the hardest difficulties for federal governments all over the world.<br>
<br>They have actually encouraged using [biofuels](https://www.businessnews.com.au/Company/Mission-NewEnergy) as an essential means of curbing carbon from vehicles and trucks.<br>
<br>Biofuels are normally a mix of [nonrenewable fuel](https://www.google.com/search?kgmid=/m/0cqd_rb) source and oil made from plants or vegetables.<br>
<br>The fact that these crops can be re-grown and soak up more CO2 suggests they counteract the carbon given off when utilized in engines.<br>
<br>Soy and palm oil were when [extensively](https://www.pinterest.com.au/missionnewenergy/) used as elements of [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) but this practice has actually been widely challenged since it encourages deforestation.<br>
<br>So for the last years approximately, making use of [utilized cooking](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) oil has broadened massively as an [alternative feedstock](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) for fuel.<br>
<br>Chip fat and other waste oils have become an [essential component](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) with a reliable industry [springing](https://www.google.com/search?kgmid=/m/0cqd_rb) up throughout Europe to collect and process the product.<br>
<br>But with the amount of [biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) made from UCO increasing by around 40% every year since 2014, there just isn't enough chip fat to walk around.<br>
<br>According to a report from the [campaign](https://pitchbook.com/profiles/company/51278-86) group Transport & Environment, external, more than half of the UCO used in Europe is imported.<br>
<br>Their research [study suggests](https://www.crunchbase.com/organization/mission-newenergy) this is highly troublesome when it concerns effect on the environment.<br>
<br>While UCO is thought about a waste product in the UK, in China, Indonesia and Malaysia it has actually long been used to . The report raises the concern 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 countries aren't available however the circulation of UCO is likely to be [comparable](https://www.businessnews.com.au/Company/Mission-NewEnergy).<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 to the UK and Ireland alone.<br>
<br>By contrast, Thailand, which has a population of 70 million people, managed to collect around 5 million litres of UCO in 2019.<br>
<br>"Because we are buying it, they have less used cooking oil to utilize on the things that they were formerly using it for," stated 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 offered.<br>
<br>"So indirectly, we're simply motivating more logging in Southeast Asia."<br>
<br>Another significant problem with UCO is the suspicion of fraud.<br>
<br>Because of need from Europe, the price of UCO is typically higher than palm oil. The worry is that some dishonest traders are merely diluting deliveries of UCO with palm.<br>
<br>As oils of various types are mixed in bulk for transport, and no screening of the materials is brought out, some specialists think 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 accreditation plans in location.<br>
<br>"It is extensively understood that the European Commission has actually taken pertinent steps to completely curb unsound market practices in [biofuel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) markets," said Angel Alberdi, EWABA's secretary general.<br>
<br>He states a new database being established by the EU will make sure that trading, accreditation and sustainability data on all bio-liquids will have to be registered.<br>
<br>"The [combination](https://www.google.com/search?kgmid=/m/0cqd_rb) of revised certification plans and the pan-EU track and trace database will make sure that no sustainability problems occur in the entire biofuels and [bio-liquids supply](https://www.bloomberg.com/profile/company/MNELF:US) chain," he told BBC News.<br>
<br>Others in the field are concerned that the database concept, which was first mooted in 2018, might not work in stemming believed scams.<br>
<br>The report from Transport & Environment points out that with shipping and air travel looking to decarbonise by utilizing biofuels, demand for UCO could double over the next years.<br>
<br>"Rising the need beyond sustainable supply levels would [increase](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) these concerns, and dangers of utilizing 'fake' UCO, possibly resulting in indirect effects such as deforestation."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related subjects<br>
<br>COP26<br>
<br>Paris environment contract<br>
<br>Climate<br>