Add Climate Change: Growing Doubts Over Chip Fat Biofuel

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<br>Climate modification: 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 concerns the ecological effect of rising imports of used [cooking](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) oil (UCO) into the UK and Europe.<br>
<br>Chip fat and other oils are thought about waste, so when they are used to make biodiesel it saves 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 prove these imports are sustainable.<br>
<br>With no screening of what's coming in, experts believe it is also ripe for fraud.<br>
<br>Used cooking oil imports may [increase](https://www.bloomberg.com/profile/company/MNELF:US) deforestation<br>
<br>Consumers pose 'growing risk' to tropical forests<br>
<br>Reducing emissions from transportation is showing to be one of the toughest challenges for governments all over the world.<br>
<br>They've [encouraged](https://www.crunchbase.com/organization/mission-newenergy) making use of biofuels as a crucial ways of [curbing carbon](https://www.google.com/search?kgmid=/m/0cqd_rb) from vehicles and trucks.<br>
<br>Biofuels are [typically](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) a blend of fossil fuel and oil made from plants or [vegetables](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html).<br>
<br>The fact that these crops can be re-grown and soak up more CO2 [implies](https://pitchbook.com/profiles/company/51278-86) they counteract the carbon discharged when used in engines.<br>
<br>Soy and palm oil were when commonly utilized as elements of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) but this practice has actually been widely [challenged](https://pitchbook.com/profiles/company/51278-86) because it motivates logging.<br>
<br>So for the last years or so, the use of used [cooking oil](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) has broadened massively as an alternative feedstock for fuel.<br>
<br>[Chip fat](https://www.google.com/search?kgmid=/m/0cqd_rb) and other waste oils have actually ended up being an essential element of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) with an effective industry springing up across Europe to gather and process the product.<br>
<br>But with the amount of biodiesel made from UCO increasing by around 40% every year given that 2014, there just isn't enough chip fat to walk around.<br>
<br>According to a report from the project group [Transport](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) & Environment, external, over half of the UCO used in Europe is imported.<br>
<br>Their study suggests this is extremely bothersome when it pertains to impacts on the environment.<br>
<br>While UCO is thought about a waste material in the UK, in China, Indonesia and Malaysia it has long been used to [feed animals](https://www.investing.com/equities/mission-newenergy-ltd-company-profile). The report raises the concern of what individuals in these nations 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 nations](https://stocktwits.com/symbol/MNEL) aren't readily available but the circulation of UCO is most likely to be comparable.<br>
<br>With a [population](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) of around 33 million, that's close to 3 litres per head of used oil that's collected and exported to the UK and Ireland alone.<br>
<br>By contrast, Thailand, which has a population of 70 million individuals, managed to gather around five million litres of UCO in 2019.<br>
<br>"Because we are purchasing it, they have actually less used cooking oil to utilize on the important things that they were previously using it for," stated Greg Archer with & Environment.<br>
<br>"And they're just buying more virgin oil and that virgin oil is largely palm oil, because that's the least expensive oil offered.<br>
<br>"So indirectly, we're simply motivating more logging in Southeast Asia."<br>
<br>Another major issue with UCO is the suspicion of fraud.<br>
<br>Because of demand from Europe, the rate of UCO is typically greater 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 mixed in bulk for transport, and no screening of the products is performed, some experts think fraud is swarming.<br>
<br>The tip of scams anywhere along the chain of supply is turned down by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust certification plans in location.<br>
<br>"It is [extensively understood](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) that the European Commission has actually taken appropriate steps to totally curb unsound market [practices](https://pitchbook.com/profiles/company/51278-86) in [biofuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) markets," said Angel Alberdi, EWABA's secretary general.<br>
<br>He states a new database being developed by the EU will ensure that trading, certification and sustainability information on all bio-liquids will have to be registered.<br>
<br>"The mix of revised accreditation plans and the pan-EU track and trace database will make sure that no sustainability concerns develop in the entire biofuels and [bio-liquids supply](https://www.zoominfo.com/c/mission-newenergy/346542889) chain," he told BBC News.<br>
<br>Others in the field are concerned that the database idea, which was very first mooted in 2018, may not work in stemming presumed fraud.<br>
<br>The report from Transport & Environment explains that with shipping and aviation aiming to decarbonise by utilizing biofuels, need for UCO could double over the next years.<br>
<br>"Rising the demand beyond sustainable supply levels would increase these concerns, and risks of using 'fake' UCO, potentially resulting in indirect impacts such as logging."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related subjects<br>
<br>COP26<br>
<br>Paris environment contract<br>
<br>Climate<br>