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[Climate](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) change: Growing doubts over chip fat [biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/)
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21 April 2021
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remarks
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354 Comments
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New research study concerns the environmental effect of increasing imports of used [cooking oil](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) (UCO) into the UK and Europe.
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Chip fat and other oils are thought about waste, so when they are used to make [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) it conserves carbon emissions by [displacing fossil](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) oil.
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But such is the demand across Europe that imports now represent over half of the UCO that's made into fuel.
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According to the study, external, there's no method to prove these [imports](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) are [sustainable](https://pitchbook.com/profiles/company/51278-86).
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With no screening of what's being available in, experts believe it is also ripe for scams.
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Used cooking oil imports might boost logging
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Consumers pose 'growing threat' to tropical forests
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Reducing emissions from transportation is proving to be one of the most difficult obstacles for federal governments all over the world.
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They have actually encouraged the use of biofuels as an important methods of suppressing carbon from vehicles and [lorries](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).
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[Biofuels](https://www.google.com/search?kgmid=/m/0cqd_rb) are usually a blend of fossil fuel and oil made from plants or veggies.
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The fact that these crops can be re-grown and soak up more CO2 implies they cancel out the carbon discharged when used in engines.
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Soy and palm oil were when widely used as parts of [biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) however this practice has actually been commonly challenged due to the fact that it encourages logging.
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So for the last decade or two, making use of utilized cooking oil has actually expanded massively as an alternative feedstock for fuel.
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Chip fat and other waste oils have actually become a crucial part of biodiesel with an effective market [springing](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) up across Europe to collect and process the product.
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But with the amount of [biodiesel](https://www.pinterest.com.au/missionnewenergy/) made from UCO increasing by around 40% every year since 2014, there simply isn't [adequate chip](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) fat to walk around.
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According to a report from the campaign group Transport & Environment, external, over half of the UCO utilized in Europe is imported.
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Their study recommends this is highly bothersome when it comes to effects on the environment.
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While UCO is thought about a waste material in the UK, in China, Indonesia and Malaysia it has actually long been used to feed animals. The [report raises](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) the question of what individuals in these countries are replacing the UCO with, when it is [exported](https://pitchbook.com/profiles/company/51278-86).
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In 2019, Malaysia exported 90 million litres of UCO to the UK and Ireland. Figures for their [exports](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) to other [European nations](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) aren't readily available but the flow of UCO is most likely to be comparable.
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With a population of around 33 million, that's close to 3 litres per head of utilized oil that's gathered and exported to the UK and Ireland alone.
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By contrast, Thailand, which has a population of 70 million individuals, to collect around five million litres of UCO in 2019.
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"Because we are purchasing it, they have less utilized cooking oil to utilize on the important things that they were formerly using it for," said Greg Archer with Transport & Environment.
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"And they're just buying more virgin oil which virgin oil is mostly palm oil, since that's the most inexpensive oil readily available.
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"So indirectly, we're simply motivating more [deforestation](https://forest500.org/rankings/companies/mission-newenergy-limited) in Southeast Asia."
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Another significant problem with UCO is the suspicion of scams.
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Because of need from Europe, the price of UCO is frequently higher than palm oil. The worry is that some deceitful traders are merely diluting deliveries of UCO with palm.
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As oils of different types are blended in bulk for transportation, and no screening of the products is brought out, some specialists believe scams is rife.
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The suggestion of fraud anywhere along the chain of supply is declined 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 known that the European Commission has actually taken appropriate actions to completely curb unsound market practices in [biofuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) markets," said Angel Alberdi, EWABA's secretary general.
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He states a brand-new database being developed by the EU will guarantee that trading, certification and sustainability data on all bio-liquids will have to be registered.
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"The mix of revised accreditation schemes and the pan-EU track and trace database will make sure that no sustainability issues emerge 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 very first mooted in 2018, may not be reliable in stemming believed fraud.
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The report from Transport & Environment explains that with shipping and aviation looking to decarbonise by utilizing biofuels, demand for UCO might double over the next years.
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"Rising the need beyond sustainable supply levels would [increase](https://pitchbook.com/profiles/company/51278-86) these issues, and risks of utilizing 'phony' UCO, possibly causing [indirect impacts](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) such as deforestation."
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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 environment agreement
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Climate
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