Update 'Climate Change: Growing Doubts Over Chip Fat Biofuel'

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<br>Climate change: over chip fat [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html)<br>
<br>21 April 2021<br>
<br>comments<br>
<br>354 Comments<br>
<br>New research questions the environmental impact of increasing imports of used cooking oil (UCO) into the UK and Europe.<br>
<br>[Chip fat](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) and other oils are considered waste, so when they are used to make [biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) it conserves carbon emissions by displacing fossil oil.<br>
<br>But such is the need throughout Europe that imports now account 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 prove these imports are sustainable.<br>
<br>With no testing of what's being available in, [professionals](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) think it is also ripe for fraud.<br>
<br>Used cooking oil imports might improve logging<br>
<br>Consumers present 'growing risk' to tropical forests<br>
<br>Reducing emissions from transportation is proving to be among the toughest obstacles for federal governments all over the world.<br>
<br>They have actually motivated using biofuels as an essential means of curbing carbon from cars and trucks and lorries.<br>
<br>Biofuels are [typically](https://forest500.org/rankings/companies/mission-newenergy-limited) a mix of [nonrenewable fuel](https://www.crunchbase.com/organization/mission-newenergy) source and oil made from plants or vegetables.<br>
<br>The truth that these crops can be re-grown and soak up more CO2 suggests they counteract the carbon produced when used 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) however this [practice](https://forest500.org/rankings/companies/mission-newenergy-limited) has actually been [extensively rejected](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) since it [encourages deforestation](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048).<br>
<br>So for the last decade or so, making use of [utilized cooking](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) oil has actually broadened massively as an alternative feedstock for fuel.<br>
<br>[Chip fat](https://pitchbook.com/profiles/company/51278-86) and other waste oils have become a crucial part of [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) with an efficient market emerging throughout Europe to collect and process the item.<br>
<br>But with the quantity of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) made from UCO increasing by around 40% every year since 2014, there simply isn't adequate chip fat to walk around.<br>
<br>According to a report from the project group Transport & Environment, external, more than half of the UCO utilized in Europe is imported.<br>
<br>Their study recommends this is highly problematic when it concerns influence on the environment.<br>
<br>While UCO is considered a waste material in the UK, in China, Indonesia and Malaysia it has actually long been used to [feed animals](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). The report raises the question of what individuals in these [nations](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) 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](https://pitchbook.com/profiles/company/51278-86) aren't available but the flow of UCO is likely to be comparable.<br>
<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](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) alone.<br>
<br>By contrast, 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 purchasing it, they have actually less utilized cooking oil to use on the important things that they were previously utilizing it for," said Greg Archer with Transport & Environment.<br>
<br>"And they're just purchasing more virgin oil and that virgin oil is mainly palm oil, because that's the most affordable oil readily available.<br>
<br>"So indirectly, we're just encouraging 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 price of UCO is often higher than palm oil. The worry is that some deceitful traders are simply diluting deliveries of UCO with palm.<br>
<br>As oils of different types are blended in bulk for transport, and no screening of the materials is performed, some specialists think scams is rife.<br>
<br>The idea 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 extensively known that the European Commission has taken [pertinent](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) steps to completely curb unsound market practices in [biofuel](https://stocktwits.com/symbol/MNEL) markets," stated Angel Alberdi, EWABA's secretary general.<br>
<br>He states a brand-new database being established by the EU will make sure that trading, certification and sustainability data on all bio-liquids will have to be registered.<br>
<br>"The combination of revised certification plans and the pan-EU track and trace database will ensure that no sustainability concerns arise 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, might not work in stemming thought fraud.<br>
<br>The report from Transport & Environment points out that with shipping and aviation looking to decarbonise by using biofuels, need for UCO could double over the next decade.<br>
<br>"Rising the demand beyond sustainable supply levels would [increase](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) these concerns, and dangers of using 'fake' UCO, possibly causing indirect impacts such as deforestation."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related topics<br>
<br>COP26<br>
<br>Paris environment arrangement<br>
<br>Climate<br>