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<br>Climate change: Growing doubts over chip fat [biofuel](https://stocktwits.com/symbol/MNEL)<br>
<br>21 April 2021<br>
<br>comments<br>
<br>354 Comments<br>
<br>New research study questions the environmental effect of [increasing imports](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) of utilized cooking oil (UCO) into the UK and Europe.<br>
<br>[Chip fat](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) and other oils are thought about waste, so when they are used to make [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) it conserves carbon emissions by displacing fossil oil.<br>
<br>But such is the demand throughout Europe that imports now account for more than half of the UCO that's made into fuel.<br>
<br>According to the study, external, there's no method to show these imports are sustainable.<br>
<br>Without any testing of what's coming in, specialists believe it is also ripe for fraud.<br>
<br>Used [cooking oil](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) imports might improve logging<br>
<br>Consumers position 'growing hazard' to tropical forests<br>
<br>Reducing emissions from transportation is proving to be one of the most difficult challenges for [governments](https://stocktwits.com/symbol/MNEL) all over the world.<br>
<br>They have actually motivated the use of biofuels as an important ways of suppressing carbon from cars and trucks and trucks.<br>
<br>[Biofuels](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) are typically a mix of fossil fuel and oil made from plants or vegetables.<br>
<br>The fact that these crops can be re-grown and absorb more CO2 suggests they the carbon discharged when utilized in engines.<br>
<br>Soy and palm oil were as soon as commonly used as components of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) but this practice has actually been commonly discredited because it encourages logging.<br>
<br>So for the last decade or so, using utilized cooking oil has actually [expanded enormously](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) as an [alternative feedstock](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) for fuel.<br>
<br>Chip fat and other waste oils have actually ended up being a crucial part of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) with an effective market emerging across Europe to collect and process the product.<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 enough chip fat to walk around.<br>
<br>According to a report from the project group Transport & Environment, external, over half of the UCO used in Europe is imported.<br>
<br>Their study recommends this is highly troublesome when it [pertains](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) to effect 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](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) to feed animals. The report raises the concern of what individuals in these nations 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 nations aren't available however the flow of UCO is likely to be comparable.<br>
<br>With a population of around 33 million, that's close to 3 litres per head of used oil that's [collected](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) and exported to the UK and Ireland alone.<br>
<br>By comparison, Thailand, which has a population of 70 million individuals, handled to collect around 5 million litres of UCO in 2019.<br>
<br>"Because we are buying it, they have actually less used cooking oil to utilize on the important things that they were formerly utilizing it for," stated Greg Archer with Transport & Environment.<br>
<br>"And they're just buying more virgin oil and that virgin oil is mostly palm oil, since that's the cheapest oil offered.<br>
<br>"So indirectly, we're just [encouraging](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) more deforestation in Southeast Asia."<br>
<br>Another major problem with UCO is the suspicion of scams.<br>
<br>Because of demand from Europe, the cost of UCO is typically greater than palm oil. The concern is that some dishonest traders are merely diluting shipments of UCO with palm.<br>
<br>As oils of different types are mixed in bulk for transportation, and no screening of the materials is brought out, some specialists believe scams is swarming.<br>
<br>The recommendation of fraud anywhere along the chain of supply is declined by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust certification schemes in location.<br>
<br>"It is commonly known that the [European Commission](https://www.crunchbase.com/organization/mission-newenergy) has actually taken relevant actions to totally curb [unsound](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) market practices in [biofuel](https://stocktwits.com/symbol/MNEL) markets," stated Angel Alberdi, EWABA's secretary general.<br>
<br>He says a new database being developed by the EU will ensure that trading, accreditation and sustainability data on all bio-liquids will have to be registered.<br>
<br>"The mix of modified accreditation schemes and the [pan-EU track](https://pitchbook.com/profiles/company/51278-86) and trace database will guarantee that no sustainability problems occur in the whole [biofuels](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) and bio-liquids supply chain," he told BBC News.<br>
<br>Others in the field are concerned that the database concept, which was first mooted in 2018, may not be effective in stemming believed scams.<br>
<br>The report from Transport & Environment explains that with shipping and air travel looking 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 of using 'phony' UCO, potentially resulting in indirect impacts such as deforestation."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related subjects<br>
<br>COP26<br>
<br>Paris climate contract<br>
<br>Climate<br>