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Climate change: Growing doubts over chip fat [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd)
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21 April 2021
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comments
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354 Comments
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New research study questions the environmental impact of rising imports of utilized cooking oil (UCO) into the UK and Europe.
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Chip fat and other oils are considered waste, so when they are used to make [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) it saves carbon emissions by oil.
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But such is the demand across Europe that [imports](https://www.businessnews.com.au/Company/Mission-NewEnergy) now [represent](https://www.crunchbase.com/organization/mission-newenergy) over half of the UCO that's made into fuel.
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According to the research study, external, there's no way to prove these imports are sustainable.
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Without any screening of what's being available in, specialists think it is likewise ripe for scams.
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Used cooking oil imports may boost deforestation
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Consumers position 'growing risk' to tropical forests
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[Reducing emissions](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) from transport is proving to be one of the toughest obstacles for governments all over the world.
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They've encouraged the use of biofuels as a crucial ways of curbing carbon from automobiles and trucks.
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Biofuels are generally a blend of nonrenewable fuel source and oil made from plants or [vegetables](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm).
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The fact that these crops can be re-grown and soak up more CO2 suggests they counteract the [carbon released](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) when used in engines.
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Soy and palm oil were once commonly utilized as [components](https://www.google.com/search?kgmid=/m/0cqd_rb) of [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) but this practice has actually been commonly rejected since it motivates logging.
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So for the last decade or so, making use of utilized cooking oil has broadened enormously as an alternative feedstock for fuel.
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Chip fat and other waste oils have actually become an [essential](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) part of [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) with a reliable market springing up across Europe to gather and process the product.
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But with the quantity of [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) made from UCO increasing by around 40% every year because 2014, there just isn't [adequate chip](https://www.pinterest.com.au/missionnewenergy/) 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 troublesome when it concerns effect on the environment.
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While UCO is thought about a waste product in the UK, in China, [Indonesia](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) and [Malaysia](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) it has long been utilized to feed animals. The report raises the concern of what individuals in these countries are replacing the UCO with, when it is exported.
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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 nations aren't offered but the circulation of UCO is 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 collected and [exported](https://www.zoominfo.com/c/mission-newenergy/346542889) to the UK and Ireland alone.
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By comparison, Thailand, which has a [population](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) of 70 million people, handled to collect around 5 million litres of UCO in 2019.
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"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.
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"And they're just purchasing more virgin oil which virgin oil is largely palm oil, since that's the most inexpensive oil offered.
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"So indirectly, we're just encouraging more deforestation in Southeast Asia."
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Another significant issue with UCO is the suspicion of scams.
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Because of demand from Europe, the rate of UCO is frequently greater than palm oil. The concern is that some unethical traders are merely watering down shipments of UCO with palm.
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As oils of various types are blended in bulk for transport, and no screening of the materials is performed, some experts believe fraud is swarming.
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The recommendation of fraud anywhere along the chain of supply is rejected by the European Waste-to-Advanced Biofuels Association (EWABA), who say there are robust certification schemes in location.
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"It is extensively understood that the European Commission has taken [relevant](https://stocktwits.com/symbol/MNEL) actions to entirely curb unsound market practices in [biofuel](https://www.businessnews.com.au/Company/Mission-NewEnergy) markets," stated Angel Alberdi, EWABA's secretary general.
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He says a new database being established by the EU will ensure that trading, accreditation and sustainability information on all bio-liquids will need to be signed up.
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"The mix of modified certification plans and the [pan-EU track](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) and trace database will ensure that no [sustainability concerns](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) develop in the whole biofuels and bio-liquids supply chain," he told BBC News.
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Others in the field are worried that the database idea, which was first mooted in 2018, might not be reliable in stemming presumed fraud.
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The report from Transport & Environment explains that with shipping and air travel looking to decarbonise by utilizing biofuels, need for UCO might double over the next decade.
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"Rising the need beyond sustainable supply levels would increase these concerns, and risks of using 'fake' UCO, possibly resulting in indirect impacts such as logging."
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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 arrangement
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Climate
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