Add Climate Change: Growing Doubts Over Chip Fat Biofuel

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<br>Climate modification: Growing doubts over chip fat [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889)<br>
<br>21 April 2021<br>
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<br>354 Comments<br>
<br>New research questions the ecological effect of [rising imports](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) of utilized cooking 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](https://www.businessnews.com.au/Company/Mission-NewEnergy) it saves carbon emissions by [displacing fossil](https://pitchbook.com/profiles/company/51278-86) oil.<br>
<br>But such is the demand throughout Europe that imports now represent majority of the UCO that's made into fuel.<br>
<br>According to the research study, external, there's no other way to prove these imports are sustainable.<br>
<br>With no testing of what's can be found in, professionals think it is also ripe for scams.<br>
<br>Used cooking oil imports might enhance logging<br>
<br>Consumers present 'growing threat' to tropical forests<br>
<br>Reducing emissions from transportation is showing to be among the hardest obstacles for federal governments all over the world.<br>
<br>They have actually encouraged making use of biofuels as a crucial ways of [curbing carbon](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) from vehicles and lorries.<br>
<br>Biofuels are [typically](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) a blend of fossil fuel and oil made from plants or vegetables.<br>
<br>The fact that these crops can be re-grown and soak up more CO2 suggests they counteract the carbon given off when utilized in engines.<br>
<br>Soy and [palm oil](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) were as soon as commonly utilized as parts of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) however this practice has actually been [extensively rejected](https://www.bloomberg.com/profile/company/MNELF:US) since it .<br>
<br>So for the last years or so, the usage of [utilized cooking](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) oil has actually expanded massively as an alternative feedstock for fuel.<br>
<br>Chip fat and other waste oils have become a crucial component of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) with an effective industry emerging across Europe to collect and process the product.<br>
<br>But with the amount of [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) made from UCO increasing by around 40% every year because 2014, there merely isn't [sufficient chip](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) fat to go around.<br>
<br>According to a report from the project group Transport & Environment, external, more than half of the UCO used in Europe is imported.<br>
<br>Their [study recommends](https://stocktwits.com/symbol/MNEL) this is highly troublesome when it pertains to effects on the environment.<br>
<br>While UCO is thought about a waste material in the UK, in China, Indonesia and Malaysia it has actually long been utilized to feed animals. The report raises the concern of what individuals in these nations are [replacing](https://www.pinterest.com.au/missionnewenergy/) 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](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) to other [European nations](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) aren't available however the flow of UCO is most likely to be similar.<br>
<br>With a population of around 33 million, that's close to 3 litres per head of used oil that's gathered and exported to the UK and Ireland alone.<br>
<br>By comparison, Thailand, which has a population of 70 million individuals, handled to gather around 5 million litres of UCO in 2019.<br>
<br>"Because we are purchasing it, they have less used cooking oil to use on the important things that they were previously using it for," stated Greg Archer with Transport & Environment.<br>
<br>"And they're simply purchasing more virgin oil and that virgin oil is mainly palm oil, because that's the most affordable oil available.<br>
<br>"So indirectly, we're [simply encouraging](https://www.zoominfo.com/c/mission-newenergy/346542889) more deforestation in Southeast Asia."<br>
<br>Another major problem with UCO is the suspicion of fraud.<br>
<br>Because of need from Europe, the price of UCO is frequently greater than palm oil. The concern is that some unethical traders are simply watering down deliveries of UCO with palm.<br>
<br>As oils of different types are blended in bulk for transport, and no testing of the products is brought out, some specialists think scams is swarming.<br>
<br>The suggestion of scams anywhere along the chain of supply is turned down by the European Waste-to-Advanced Biofuels Association (EWABA), who say there are robust accreditation schemes in location.<br>
<br>"It is widely known that the European Commission has taken pertinent actions to entirely curb unsound market practices in [biofuel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) markets," stated Angel Alberdi, EWABA's secretary general.<br>
<br>He says a brand-new database being established by the EU will guarantee that trading, accreditation and sustainability data on all bio-liquids will have to be signed up.<br>
<br>"The combination of revised accreditation plans and the pan-EU track and trace database will ensure that no sustainability concerns occur in the entire biofuels and [bio-liquids supply](https://forest500.org/rankings/companies/mission-newenergy-limited) chain," he informed BBC News.<br>
<br>Others in the field are concerned that the database idea, which was first mooted in 2018, might not be effective in stemming suspected fraud.<br>
<br>The report from Transport & Environment explains that with shipping and aviation seeking to decarbonise by utilizing biofuels, need for UCO might double over the next decade.<br>
<br>"Rising the need beyond sustainable supply levels would increase these concerns, and risks of utilizing 'fake' UCO, potentially causing indirect effects such as [logging](https://www.bloomberg.com/profile/company/MNELF:US)."<br>
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br>
<br>Related topics<br>
<br>COP26<br>
<br>Paris climate arrangement<br>
<br>Climate<br>