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.com.au/ASX:MBT/Mission-NewEnergy-Ltd)<br>
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<br>21 April 2021<br>
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<br>remarks<br>
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<br>354 Comments<br>
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<br>New research [concerns](https://pitchbook.com/profiles/company/51278-86) the environmental effect of increasing imports of used cooking oil (UCO) into the UK and Europe.<br>
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<br>Chip fat and other oils are thought about waste, so when they are utilized to make [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) it conserves carbon emissions by [displacing fossil](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) oil.<br>
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<br>But such is the need across Europe that imports now [represent](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) over half of the UCO that's made into fuel.<br>
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<br>According to the research study, external, there's no chance to prove these imports are sustainable.<br>
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<br>With no testing of what's coming in, experts believe it is likewise ripe for scams.<br>
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<br>Used cooking oil imports might enhance logging<br>
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<br>Consumers position 'growing hazard' to tropical forests<br>
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<br>Reducing emissions from transportation is showing to be among the hardest challenges for governments all over the world.<br>
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<br>They've encouraged using biofuels as an important methods of suppressing carbon from cars and trucks and trucks.<br>
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<br>Biofuels are typically a blend of [nonrenewable fuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) source and oil made from plants or [vegetables](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608).<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 emitted when used in engines.<br>
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<br>Soy and palm oil were once extensively used as parts of [biodiesel](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) however this practice has actually been widely challenged since it motivates deforestation.<br>
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<br>So for the last years or two, making use of cooking oil has expanded enormously as an alternative feedstock for fuel.<br>
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<br>Chip fat and other waste oils have ended up being an essential element of [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) with an effective market [emerging](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) throughout Europe to collect and process the item.<br>
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<br>But with the amount of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) made from UCO increasing by around 40% every year because 2014, there merely 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, more than half of the [UCO utilized](https://pitchbook.com/profiles/company/51278-86) in Europe is imported.<br>
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<br>Their research study suggests this is highly troublesome when it comes to influence 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 utilized to [feed animals](https://www.investing.com/equities/mission-newenergy-ltd-company-profile). The report raises the concern 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 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European countries aren't offered but the [circulation](https://www.crunchbase.com/organization/mission-newenergy) of UCO is most likely to be comparable.<br>
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<br>With a [population](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) 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 individuals, handled to collect around five million litres of UCO in 2019.<br>
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<br>"Because we are purchasing it, they have less used cooking oil to use on the important things that they were previously utilizing it for," said Greg Archer with Transport & Environment.<br>
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<br>"And they're simply buying more virgin oil which virgin oil is largely palm oil, since that's the most affordable oil readily available.<br>
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<br>"So indirectly, we're simply motivating more logging in Southeast Asia."<br>
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<br>Another significant problem with UCO is the suspicion of fraud.<br>
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<br>Because of need from Europe, the price of UCO is frequently higher than palm oil. The concern is that some deceitful traders are merely diluting shipments 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 products is performed, some professionals believe fraud is swarming.<br>
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<br>The idea of fraud anywhere along the chain of supply is rejected by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust certification schemes in place.<br>
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<br>"It is widely [understood](https://forest500.org/rankings/companies/mission-newenergy-limited) that the [European Commission](https://forest500.org/rankings/companies/mission-newenergy-limited) has taken relevant actions to completely suppress unsound market practices in [biofuel](https://www.google.com/search?kgmid=/m/0cqd_rb) markets," stated Angel Alberdi, EWABA's secretary general.<br>
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<br>He says a new database being established by the EU will guarantee that trading, accreditation and sustainability information on all bio-liquids will have to be registered.<br>
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<br>"The combination of [revised certification](https://pitchbook.com/profiles/company/51278-86) schemes and the pan-EU track and trace database will guarantee that no sustainability problems occur in the whole biofuels and bio-liquids supply chain," he told BBC News.<br>
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<br>Others in the field are worried that the database concept, which was very first mooted in 2018, might not be effective in stemming presumed scams.<br>
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<br>The report from Transport & Environment explains that with shipping and air travel aiming to decarbonise by utilizing biofuels, demand for UCO could double over the next years.<br>
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<br>"Rising the need beyond [sustainable supply](https://www.zoominfo.com/c/mission-newenergy/346542889) levels would increase these issues, and threats of utilizing 'fake' UCO, potentially resulting in indirect effects such as [logging](https://pitchbook.com/profiles/company/51278-86)."<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 climate contract<br>
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<br>Climate<br>
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