Add Climate Change: Growing Doubts Over Chip Fat Biofuel
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<br>Climate modification: Growing doubts over [chip fat](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) [biofuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/)<br>
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<br>21 April 2021<br>
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<br>comments<br>
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<br>354 Comments<br>
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<br>New research concerns the ecological effect 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 thought about waste, so when they are utilized to make [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) it conserves carbon emissions by displacing fossil oil.<br>
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<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>
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<br>According to the study, external, there's no chance to show these imports are sustainable.<br>
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<br>Without any testing of what's can be found in, specialists believe it is also ripe for fraud.<br>
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<br>Used cooking oil imports may improve logging<br>
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<br>Consumers pose 'growing hazard' to [tropical](https://pitchbook.com/profiles/company/51278-86) forests<br>
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<br>Reducing emissions from transportation is [proving](https://pitchbook.com/profiles/company/51278-86) to be one of the most difficult difficulties for federal governments all over the world.<br>
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<br>They have actually encouraged making use of biofuels as an [essential methods](https://pitchbook.com/profiles/company/51278-86) of suppressing carbon from automobiles and trucks.<br>
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<br>Biofuels are typically a blend of fossil fuel and oil made from plants or veggies.<br>
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<br>The truth that these crops can be re-grown and take in more CO2 suggests they cancel out the carbon produced when used in engines.<br>
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<br>Soy and palm oil were when extensively used as [elements](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) however this practice has actually been commonly challenged because it motivates logging.<br>
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<br>So for the last years or two, using used cooking oil has expanded massively as an alternative feedstock for fuel.<br>
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<br>[Chip fat](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) and other waste oils have actually become a crucial [element](https://www.zoominfo.com/c/mission-newenergy/346542889) of biodiesel with an effective industry springing up across Europe to collect and process the item.<br>
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<br>But with the amount of biodiesel made from UCO increasing by around 40% every year since 2014, there simply isn't adequate chip fat to go around.<br>
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<br>According to a report from the campaign group Transport & Environment, external, majority of the UCO used in Europe is imported.<br>
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<br>Their [study suggests](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) this is highly bothersome when it pertains to [impacts](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) on the environment.<br>
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<br>While UCO is thought about a waste product in the UK, in China, [Indonesia](https://pitchbook.com/profiles/company/51278-86) and Malaysia it has actually long been used to feed animals. The report raises the concern of what in these nations 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](https://www.crunchbase.com/organization/mission-newenergy) for their exports to other European countries aren't available however the circulation of UCO is likely to be similar.<br>
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<br>With a population of around 33 million, that's close to 3 litres per head of used oil that's [gathered](https://www.crunchbase.com/organization/mission-newenergy) and exported to the UK and [Ireland](https://www.zoominfo.com/c/mission-newenergy/346542889) alone.<br>
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<br>By comparison, Thailand, which has a population of 70 million individuals, managed to gather around five million litres of UCO in 2019.<br>
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<br>"Because we are buying it, they have actually less utilized cooking oil to use on the important things that they were previously using it for," stated Greg Archer with Transport & Environment.<br>
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<br>"And they're simply buying more virgin oil which virgin oil is largely palm oil, since that's the most affordable oil readily available.<br>
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<br>"So indirectly, we're just encouraging more logging in Southeast Asia."<br>
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<br>Another significant problem with UCO is the suspicion of fraud.<br>
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<br>Because of need from Europe, the rate of UCO is often greater than palm oil. The concern is that some unethical traders are simply diluting deliveries of UCO with palm.<br>
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<br>As oils of various types are mixed in bulk for transportation, and no screening of the products is performed, some experts believe scams is rife.<br>
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<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 certification schemes in location.<br>
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<br>"It is extensively understood that the European Commission has actually taken relevant steps to completely curb unsound market practices in [biofuel](https://www.businessnews.com.au/Company/Mission-NewEnergy) markets," said Angel Alberdi, EWABA's secretary general.<br>
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<br>He states a brand-new database being developed by the EU will make sure that trading, certification and sustainability data on all bio-liquids will have to be registered.<br>
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<br>"The combination of modified accreditation plans and the [pan-EU track](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) and trace database will guarantee that no sustainability concerns develop in the entire [biofuels](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) and bio-liquids supply chain," he informed 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 effective in stemming presumed fraud.<br>
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<br>The report from Transport & Environment explains that with shipping and aviation looking to decarbonise by using 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 issues, and threats of using 'fake' UCO, potentially causing indirect [impacts](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) such as deforestation."<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 climate arrangement<br>
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<br>Climate<br>
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