Add 'Climate Change: Growing Doubts Over Chip Fat Biofuel'
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<br>Climate change: Growing doubts over chip fat [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html)<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 environmental effect of rising imports of used cooking oil (UCO) into the UK and Europe.<br>
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<br>[Chip fat](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) and other oils are thought about waste, so when they are utilized to make [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) it conserves carbon emissions by [displacing fossil](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) oil.<br>
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<br>But such is the demand across Europe that imports now represent majority of the UCO that's made into fuel.<br>
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<br>According to the research study, external, there's no other way to prove these imports are sustainable.<br>
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<br>With no testing of what's coming in, professionals believe it is also ripe for fraud.<br>
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<br>Used cooking oil imports might improve logging<br>
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<br>Consumers posture 'growing risk' to tropical forests<br>
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<br>Reducing emissions from transportation is showing to be one of the toughest difficulties for governments all over the world.<br>
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<br>They've encouraged using biofuels as an important methods of [curbing carbon](https://www.bloomberg.com/profile/company/MNELF:US) from cars and lorries.<br>
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<br>Biofuels are usually a mix of [fossil fuel](https://www.crunchbase.com/organization/mission-newenergy) and oil made from plants or vegetables.<br>
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<br>The fact that these crops can be [re-grown](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) and soak up more CO2 indicates they cancel out the [carbon emitted](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) when utilized in engines.<br>
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<br>Soy and [palm oil](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) were once extensively utilized as parts of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) however this practice has actually been [commonly challenged](https://www.zoominfo.com/c/mission-newenergy/346542889) because it [motivates deforestation](https://www.businessnews.com.au/Company/Mission-NewEnergy).<br>
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<br>So for the last decade approximately, the usage of used cooking oil has actually expanded enormously as an alternative feedstock for fuel.<br>
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<br>Chip fat and other waste oils have actually ended up being an essential element of biodiesel with an efficient industry emerging throughout Europe to gather and process the item.<br>
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<br>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 given that 2014, there simply isn't sufficient chip fat to go around.<br>
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<br>According to a report from the project group Transport & Environment, external, over half of the UCO utilized in Europe is imported.<br>
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<br>Their research study recommends this is extremely problematic when it concerns influence on the environment.<br>
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<br>While UCO is considered 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](https://www.google.com/search?kgmid=/m/0cqd_rb) of what individuals in these countries are replacing the UCO with, when it is exported.<br>
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<br>In 2019, Malaysia exported 90 million litres of UCO to the UK and Ireland. Figures for their exports to other [European nations](https://www.zoominfo.com/c/mission-newenergy/346542889) aren't readily available but the flow of UCO is most likely to be similar.<br>
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<br>With a population 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, managed to collect around 5 million litres of UCO in 2019.<br>
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<br>"Because we are buying it, they have less utilized cooking oil to utilize on the things that they were previously using it for," [stated Greg](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) 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, because that's the most inexpensive oil offered.<br>
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<br>"So indirectly, we're simply motivating 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 need from Europe, the cost of UCO is often greater than palm oil. The worry is that some unscrupulous traders are just diluting deliveries of UCO with palm.<br>
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<br>As oils of different types are mixed in bulk for transportation, and no testing of the materials is carried out, some experts think fraud is swarming.<br>
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<br>The idea 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 certification plans in location.<br>
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<br>"It is widely known that the European Commission has actually taken appropriate to completely curb unsound market [practices](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) in [biofuel](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) markets," stated Angel Alberdi, EWABA's secretary general.<br>
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<br>He states a new database being developed by the EU will ensure that trading, accreditation and sustainability information on all bio-liquids will have to be signed up.<br>
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<br>"The mix of modified accreditation plans and the pan-EU track and [trace database](https://www.zoominfo.com/c/mission-newenergy/346542889) will make sure that no sustainability concerns occur 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 first mooted in 2018, may not be reliable in stemming suspected fraud.<br>
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<br>The report from Transport & Environment points out that with shipping and aviation wanting to decarbonise by using biofuels, demand for UCO might double over the next decade.<br>
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<br>"Rising the demand beyond [sustainable supply](https://www.bloomberg.com/profile/company/MNELF:US) levels would increase these issues, and risks of [utilizing 'fake'](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) UCO, possibly causing indirect effects 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 environment contract<br>
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<br>Climate<br>
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