Add Climate Change: Growing Doubts Over Chip Fat Biofuel
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<br>Climate change: Growing doubts over chip fat [biofuel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048)<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 questions the [ecological](https://pitchbook.com/profiles/company/51278-86) effect of [increasing imports](https://www.zoominfo.com/c/mission-newenergy/346542889) of [utilized cooking](https://forest500.org/rankings/companies/mission-newenergy-limited) 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 utilized to make [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) it saves carbon emissions by displacing fossil oil.<br>
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<br>But such is the demand throughout Europe that imports now 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 other way to show these imports are sustainable.<br>
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<br>With no testing of what's being available in, professionals think it is also ripe for scams.<br>
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<br>Used cooking oil imports might boost deforestation<br>
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<br>[Consumers position](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) ['growing threat'](https://www.businessnews.com.au/Company/Mission-NewEnergy) to tropical forests<br>
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<br>Reducing emissions from transportation is showing to be one of the most difficult obstacles for governments all over the world.<br>
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<br>They've motivated the use of biofuels as an important methods of curbing carbon from cars and lorries.<br>
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<br>Biofuels are normally a blend of [fossil fuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) and oil made from plants or vegetables.<br>
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<br>The reality that these crops can be re-grown and take in more CO2 [implies](https://pitchbook.com/profiles/company/51278-86) they cancel out the carbon produced when utilized in engines.<br>
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<br>Soy and palm oil were as soon as [commonly](https://www.google.com/search?kgmid=/m/0cqd_rb) used as parts of [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) however this practice has actually been extensively rejected since it motivates logging.<br>
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<br>So for the last decade or so, the use of used cooking oil has broadened enormously as an alternative feedstock for fuel.<br>
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<br>Chip fat and other waste oils have ended up being an essential component of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) with an efficient industry springing up across Europe to gather and process the product.<br>
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<br>But with the quantity of [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) made from UCO increasing by around 40% every year given that 2014, there simply isn't adequate chip fat to walk around.<br>
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<br>According to a report from the project 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 extremely troublesome when it concerns effects 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 it has long been used to feed animals. The report raises the [concern](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) of what people in these nations are [replacing](https://www.crunchbase.com/organization/mission-newenergy) the UCO with, when it is exported.<br>
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<br>In 2019, [Malaysia exported](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) 90 million litres of UCO to the UK and [Ireland](https://www.bloomberg.com/profile/company/MNELF:US). Figures for their exports to other European nations aren't available but the circulation of UCO is likely to be similar.<br>
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<br>With a [population](https://www.bloomberg.com/profile/company/MNELF:US) of around 33 million, that's close to three litres per head of utilized 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, [managed](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) 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 formerly using it for," said Greg Archer with Transport & Environment.<br>
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<br>"And they're simply purchasing more virgin oil which virgin oil is mainly palm oil, since that's the least expensive 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 major issue with UCO is the suspicion of fraud.<br>
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<br>Because of demand from Europe, the rate of UCO is frequently greater than palm oil. The concern is that some unethical traders are merely watering down deliveries of UCO with palm.<br>
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<br>As oils of various types are mixed in bulk for transport, and no screening of the materials is brought out, some professionals think fraud is rife.<br>
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<br>The idea 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 schemes in place.<br>
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<br>"It is extensively understood that the European Commission has actually taken pertinent actions to entirely [suppress unsound](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) market practices in [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) markets," stated Angel Alberdi, EWABA's secretary general.<br>
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<br>He states a brand-new database being developed by the EU will guarantee that trading, certification and sustainability information on all bio-liquids will need to be signed up.<br>
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<br>"The mix of revised accreditation plans and the pan-EU track and trace database will ensure that no sustainability problems arise in the entire biofuels and bio-liquids supply chain," he informed BBC News.<br>
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<br>Others in the field are concerned that the database idea, which was very first mooted in 2018, might not be effective in stemming presumed scams.<br>
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<br>The report from Transport & Environment points out that with shipping and aviation looking to decarbonise by utilizing biofuels, demand 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 risks of utilizing 'phony' UCO, potentially causing indirect impacts such as logging."<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 environment agreement<br>
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<br>Climate<br>
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