Add 'Climate Change: Growing Doubts Over Chip Fat Biofuel'
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<br>Climate change: Growing doubts over chip fat [biofuel](https://stocktwits.com/symbol/MNEL)<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 study concerns the [environmental impact](https://stocktwits.com/symbol/MNEL) of increasing imports 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](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) and other oils are considered waste, so when they are used to make [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) it saves carbon by displacing fossil oil.<br>
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<br>But such is the demand throughout Europe that imports now [represent majority](https://forest500.org/rankings/companies/mission-newenergy-limited) of the UCO that's made into fuel.<br>
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<br>According to the study, external, there's no method to show these imports are sustainable.<br>
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<br>With no screening of what's can be found in, specialists think it is also ripe for scams.<br>
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<br>Used cooking oil imports may enhance logging<br>
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<br>[Consumers](https://www.bloomberg.com/profile/company/MNELF:US) present 'growing hazard' to tropical forests<br>
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<br>Reducing emissions from transport is proving to be one of the [toughest obstacles](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) for federal governments all over the world.<br>
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<br>They have actually encouraged making use of biofuels as an important means of suppressing carbon from vehicles and trucks.<br>
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<br>Biofuels are normally a blend of [fossil fuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) and oil made from plants or vegetables.<br>
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<br>The fact that these crops can be re-grown and take in more CO2 suggests they counteract the carbon produced when utilized in engines.<br>
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<br>Soy and palm oil were when extensively utilized as elements of biodiesel however this practice has actually been commonly challenged since it encourages logging.<br>
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<br>So for the last years or so, using used cooking oil has expanded massively as an alternative feedstock for fuel.<br>
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<br>Chip fat and other waste oils have actually ended up being a key part of [biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) with a reliable industry [emerging](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) throughout Europe to gather and process the product.<br>
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<br>But with the amount of [biodiesel](https://www.pinterest.com.au/missionnewenergy/) made from UCO increasing by around 40% every year considering that 2014, there just isn't sufficient [chip fat](https://www.crunchbase.com/organization/mission-newenergy) to walk around.<br>
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<br>According to a report from the [campaign](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) group [Transport](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) & Environment, external, more than half of the UCO utilized in Europe is imported.<br>
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<br>Their study suggests this is extremely bothersome when it comes to effect 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 question of what people in these nations are changing the UCO with, when it is exported.<br>
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<br>In 2019, [Malaysia exported](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) 90 million litres of UCO to the UK and Ireland. [Figures](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) for their [exports](https://pitchbook.com/profiles/company/51278-86) to other European countries aren't available however the circulation 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 3 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](https://www.bloomberg.com/profile/company/MNELF:US) of 70 million people, managed to gather around 5 million litres of UCO in 2019.<br>
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<br>"Because we are buying it, they have less used cooking oil to use on the important things that they were previously utilizing it for," stated Greg Archer with Transport & Environment.<br>
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<br>"And they're just purchasing more virgin oil which virgin oil is mainly palm oil, since that's the cheapest oil readily available.<br>
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<br>"So indirectly, we're just motivating more deforestation in Southeast Asia."<br>
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<br>Another major problem with UCO is the suspicion of fraud.<br>
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<br>Because of need from Europe, the rate of UCO is typically higher than palm oil. The worry is that some deceitful traders are just watering down deliveries of UCO with palm.<br>
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<br>As oils of different types are blended in bulk for transport, and no screening of the products is brought out, some professionals believe fraud is swarming.<br>
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<br>The idea of scams anywhere along the chain of supply is declined by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust certification plans in place.<br>
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<br>"It is extensively known that the European Commission has actually taken relevant actions to entirely suppress unsound market practices in [biofuel](https://stocktwits.com/symbol/MNEL) markets," said Angel Alberdi, EWABA's secretary general.<br>
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<br>He says a new database being developed by the EU will make sure that trading, certification and sustainability data on all bio-liquids will need to be registered.<br>
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<br>"The combination of revised accreditation plans and the pan-EU track and trace database will ensure that no sustainability issues arise in the entire biofuels and [bio-liquids supply](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) 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, may not be effective in stemming presumed fraud.<br>
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<br>The report from Transport & Environment mentions that with shipping and air travel seeking to decarbonise by utilizing biofuels, need for UCO could double over the next years.<br>
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<br>"Rising the demand beyond sustainable supply levels would increase these issues, and threats of using 'fake' UCO, potentially resulting in indirect effects 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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