Add Climate Change: Growing Doubts Over Chip Fat Biofuel
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<br>Climate modification: Growing doubts over chip fat [biofuel](https://www.businessnews.com.au/Company/Mission-NewEnergy)<br>
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<br>21 April 2021<br>
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<br>remarks<br>
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<br>354 Comments<br>
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<br>New research study questions the ecological impact of increasing imports of used cooking oil (UCO) into the UK and Europe.<br>
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<br>Chip fat and other oils are considered waste, so when they are used to make biodiesel it saves carbon [emissions](https://www.bloomberg.com/profile/company/MNELF:US) by [displacing fossil](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) oil.<br>
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<br>But such is the demand across Europe that imports now account for over half of the UCO that's made into fuel.<br>
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<br>According to the research study, external, there's no method to show these imports are sustainable.<br>
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<br>With no [testing](https://stocktwits.com/symbol/MNEL) of what's being available in, experts think it is also ripe for fraud.<br>
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<br>Used cooking oil [imports](https://stocktwits.com/symbol/MNEL) might boost logging<br>
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<br>Consumers position ['growing](https://www.pinterest.com.au/missionnewenergy/) threat' to tropical forests<br>
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<br>Reducing emissions from transportation is proving to be among the hardest obstacles for governments all over the world.<br>
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<br>They have actually [motivated](https://www.bloomberg.com/profile/company/MNELF:US) using biofuels as an important means of curbing carbon from cars and lorries.<br>
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<br>Biofuels are typically a mix of fossil fuel and oil made from plants or veggies.<br>
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<br>The fact that these crops can be re-grown and take in more CO2 means they cancel out the [carbon emitted](https://www.crunchbase.com/organization/mission-newenergy) when used in engines.<br>
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<br>Soy and palm oil were when commonly used as elements of [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) but this [practice](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) has actually been extensively challenged since it encourages deforestation.<br>
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<br>So for the last years approximately, the usage of used cooking oil has actually broadened enormously as an alternative feedstock for fuel.<br>
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<br>Chip fat and other [waste oils](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) have become an essential element of biodiesel with an effective market emerging throughout Europe to collect and process the product.<br>
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<br>But with the quantity of biodiesel made from UCO increasing by around 40% every year since 2014, there simply isn't adequate chip fat to walk around.<br>
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<br>According to a report from the campaign group Transport & Environment, external, more than half of the UCO used in Europe is imported.<br>
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<br>Their study recommends this is highly bothersome when it comes to influence on the environment.<br>
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<br>While UCO is thought about a waste product in the UK, in China, Indonesia and [Malaysia](https://forest500.org/rankings/companies/mission-newenergy-limited) it has actually long been utilized to . The report raises the concern of what people in these nations are replacing the UCO with, when it is exported.<br>
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<br>In 2019, [Malaysia exported](https://stocktwits.com/symbol/MNEL) 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European countries aren't offered but the [circulation](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) of UCO is likely to be comparable.<br>
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<br>With a [population](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) 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 alone.<br>
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<br>By contrast, Thailand, which has a population of 70 million people, handled to gather around 5 million litres of UCO in 2019.<br>
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<br>"Because we are purchasing it, they have actually less used cooking oil to utilize on the things that they were previously utilizing it for," stated Greg Archer with Transport & Environment.<br>
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<br>"And they're just buying more virgin oil and that virgin oil is largely palm oil, because that's the most affordable oil offered.<br>
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<br>"So indirectly, we're simply 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 just diluting shipments of UCO with palm.<br>
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<br>As oils of different types are mixed in bulk for transportation, and no screening of the materials is performed, some experts believe fraud is rife.<br>
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<br>The tip of fraud anywhere along the chain of supply is turned down by the European Waste-to-Advanced Biofuels Association (EWABA), who say there are robust accreditation plans in place.<br>
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<br>"It is commonly understood that the European Commission has taken appropriate steps to totally suppress unsound market practices in [biofuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) markets," said Angel Alberdi, EWABA's secretary general.<br>
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<br>He says a brand-new database being established by the EU will guarantee that trading, accreditation and sustainability information on all bio-liquids will need to be signed up.<br>
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<br>"The combination of [revised accreditation](https://www.businessnews.com.au/Company/Mission-NewEnergy) schemes and the pan-EU track and trace database will guarantee that no [sustainability issues](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) arise in the entire [biofuels](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) and [bio-liquids supply](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) chain," he told BBC News.<br>
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<br>Others in the field are worried that the database concept, which was very first mooted in 2018, may not be effective in stemming suspected fraud.<br>
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<br>The report from Transport & Environment explains that with shipping and aviation looking to decarbonise by utilizing biofuels, demand for UCO could double over the next years.<br>
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<br>"Rising the demand beyond [sustainable supply](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) levels would increase these concerns, and risks of using 'fake' UCO, potentially leading to indirect impacts such as deforestation."<br>
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<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
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<br>Related topics<br>
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<br>COP26<br>
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<br>Paris climate agreement<br>
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<br>Climate<br>
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