Biofuels: 'Irrational' and 'even worse than nonrenewable fuel sources'

The UK's "unreasonable" usage of biofuels will cost motorists around ₤ 460 million over the next 12 months, a think tank states.

A report by Chatham House, external says the growing dependence on sustainable liquid fuels will also increase food costs.

The author states that biodiesel made from vegetable oil was worse for the environment than fossil fuels.

Under EU law, external, biofuels are set to make up 5% of the UK's transportation fuel from today.

Since 2008, the UK has needed fuel suppliers to add a growing percentage of sustainable materials into the gas and diesel they provide. These biofuels are mainly ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

But research study brought out for Chatham House says that reaching the 5% level means that UK vehicle drivers will need to pay an additional ₤ 460m a year because of the greater cost of fuel at the pump and from filling up more frequently as biofuels have a lower energy material.

The report state that if the UK is to satisfy its responsibilities to EU energy targets the cost to vehicle drivers is likely to rise to ₤ 1.3 bn per year by 2020.

"It is tough to discover any great news," Rob Bailey, senior research fellow at Chatham House, told BBC News.

"Biofuels increase expenses and they are a really costly way to lower carbon emissions," he said.

The EU biofuel mandates are also having hugely distorting results in the market. Because utilized cooking oil is considered among the most sustainable types of biodiesel, the rate for it has increased quickly. Rob Bailey states that towards completion of 2012 it was more pricey than refined palm oil.

"It produces a monetary reward to buy refined palm oil, cook a chip in it to turn it into utilized cooking oil and after that offer it at revenue,"

"It is insane but the rewards are there."

There are also stresses that taking EU land out of production to grow rapeseed oil in particular is producing more climate issues than it fixes. The more fuel of this type that is taken into vehicles the larger the deficit created in the edible oils market. This had lead to increased imports of palm oil from Indonesia, frequently produced on deforested land.

"Once you take into account these indirect results, biofuels made from veggie oils really result worldwide in more emissions than you would obtain from utilizing diesel in the first place," said Rob Bailey.

"Plus you are asking vehicle drivers to pay more for the fuel - it makes no sense, it is a completely unreasonable technique."

Biofuel benefits

The European Biodiesel Board (EBB), which represents the industry, external throughout the EU, said it was aware of the issues brought on by the required. But it believes that biofuels have many positives.

"Blaming biofuels for all the problems on the planet is a bit too overstated," stated Isabelle Maurizi, task manager at the EBB.

"It has actually brought lots of advantages. It has actually enhanced the security of our diesel