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Climate modification: Growing doubts over chip fat [biofuel](https://stocktwits.com/symbol/MNEL)
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21 April 2021
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remarks
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354 Comments
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New research study questions the environmental impact of [increasing imports](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) of used [cooking oil](https://www.zoominfo.com/c/mission-newenergy/346542889) (UCO) into the UK and Europe.
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Chip fat and other oils are thought about waste, so when they are utilized to make [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) it saves carbon emissions by displacing fossil oil.
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But such is the demand throughout Europe that imports now represent over half of the UCO that's made into fuel.
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According to the research study, external, there's no chance to show these imports are sustainable.
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With no testing of what's can be found in, experts think it is likewise ripe for scams.
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Used cooking oil imports might boost logging
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Consumers pose 'growing danger' to tropical forests
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Reducing emissions from transportation is proving to be one of the toughest challenges for federal governments all over the world.
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They have actually encouraged making use of biofuels as an essential ways of suppressing carbon from [automobiles](https://stocktwits.com/symbol/MNEL) and [lorries](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price).
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[Biofuels](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) are generally a mix of [nonrenewable fuel](https://www.zoominfo.com/c/mission-newenergy/346542889) source and oil made from plants or vegetables.
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The reality that these crops can be re-grown and soak up more CO2 indicates they cancel out the carbon emitted when utilized in engines.
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Soy and palm oil were as soon as widely utilized as [components](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) of [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) however this practice has actually been [extensively discredited](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) since it [motivates deforestation](https://www.bloomberg.com/profile/company/MNELF:US).
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So for the last decade approximately, the usage of utilized cooking oil has expanded enormously as an alternative [feedstock](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) for fuel.
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Chip fat and other waste oils have actually ended up being a key part of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) with a reliable market springing up throughout Europe to collect and process the product.
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But with the amount of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) made from UCO increasing by around 40% every year since 2014, there just isn't adequate chip fat to walk around.
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According to a report from the campaign group Transport & Environment, external, majority of the UCO used in Europe is imported.
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Their research study recommends this is extremely problematic when it comes to effect on the environment.
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While UCO is thought about a waste product in the UK, in China, Indonesia and Malaysia it has actually long been utilized to [feed animals](https://www.investing.com/equities/mission-newenergy-ltd-company-profile). The report raises the of what people in these nations are changing the UCO with, when it is [exported](https://pitchbook.com/profiles/company/51278-86).
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In 2019, Malaysia exported 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European countries aren't available however the flow of UCO is most likely to be similar.
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With a population of around 33 million, that's close to 3 litres per head of utilized oil that's [gathered](https://www.bloomberg.com/profile/company/MNELF:US) and exported to the UK and Ireland alone.
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By contrast, Thailand, which has a population of 70 million people, handled to gather around five million litres of UCO in 2019.
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"Because we are purchasing it, they have less utilized cooking oil to utilize on the important things that they were previously using it for," said Greg Archer with Transport & Environment.
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"And they're just buying more virgin oil and that virgin oil is largely palm oil, since that's the cheapest oil offered.
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"So indirectly, we're just motivating more logging in Southeast Asia."
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Another significant problem with UCO is the suspicion of scams.
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Because of need from Europe, the price of UCO is typically higher than palm oil. The concern is that some unethical traders are merely diluting deliveries of UCO with palm.
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As oils of various types are blended in bulk for transportation, and no testing of the materials is performed, some experts think fraud is swarming.
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The idea of scams anywhere along the chain of supply is declined by the European Waste-to-Advanced Biofuels Association (EWABA), who say there are robust certification plans in place.
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"It is commonly known that the European Commission has actually taken appropriate steps to completely suppress unsound market practices in [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) markets," said Angel Alberdi, EWABA's secretary general.
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He says a new database being established by the EU will ensure that trading, certification and sustainability data on all bio-liquids will need to be signed up.
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"The mix of [modified certification](https://www.bloomberg.com/profile/company/MNELF:US) plans and the pan-EU track and [trace database](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) will ensure that no sustainability problems arise in the entire biofuels and bio-liquids supply chain," he informed BBC News.
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Others in the field are worried that the database concept, which was very first mooted in 2018, may not be effective in stemming suspected scams.
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The report from Transport & Environment explains that with shipping and aviation seeking to decarbonise by utilizing biofuels, need for UCO could double over the next decade.
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"Rising the need beyond sustainable supply levels would increase these concerns, and dangers of using 'phony' UCO, possibly leading to indirect effects such as deforestation."
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Follow Matt on Twitter @mattmcgrathbbc, external.
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Related topics
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COP26
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Paris climate agreement
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Climate
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