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Climate change: Growing doubts over chip fat [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889)
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21 April 2021
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remarks
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354 Comments
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New research questions the environmental effect of rising imports of utilized cooking oil (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 it [saves carbon](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) emissions by oil.
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But such is the demand throughout Europe that imports now account for more than half of the UCO that's made into fuel.
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According to the research study, external, there's no chance to prove these imports are sustainable.
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Without any [testing](https://www.zoominfo.com/c/mission-newenergy/346542889) of what's coming in, professionals believe it is likewise ripe for fraud.
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Used cooking oil imports may improve logging
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Consumers present 'growing danger' to tropical forests
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Reducing emissions from transportation is proving to be one of the hardest challenges for federal governments all over the world.
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They have actually motivated using biofuels as a crucial methods of [curbing](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) carbon from cars and trucks and lorries.
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Biofuels are usually a blend of [nonrenewable fuel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) source and oil made from plants or vegetables.
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The truth that these crops can be re-grown and soak up more CO2 suggests they cancel out the carbon emitted when used in engines.
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Soy and palm oil were when widely utilized as parts of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) but this practice has been widely discredited because it encourages logging.
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So for the last years approximately, using utilized [cooking oil](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) has broadened enormously as an alternative feedstock for fuel.
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Chip fat and other waste oils have become a crucial element of [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) with an effective market springing up across Europe to collect and process the product.
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But with the quantity of [biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) made from UCO increasing by around 40% every year because 2014, there merely isn't enough chip fat to go around.
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According to a report from the [project](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) group Transport & Environment, external, majority of the [UCO utilized](https://www.businessnews.com.au/Company/Mission-NewEnergy) in Europe is imported.
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Their research study suggests this is extremely bothersome when it concerns effects on the environment.
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While UCO is considered a waste material in the UK, in China, Indonesia and Malaysia it has actually long been utilized to feed animals. The [report raises](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) the concern of what individuals in these countries are [replacing](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) the UCO with, when it is exported.
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In 2019, [Malaysia exported](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European countries aren't available but the flow of UCO is likely to be comparable.
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With a population of around 33 million, that's close to three litres per head of utilized oil that's collected and exported to the UK and Ireland alone.
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By comparison, Thailand, which has a population of 70 million individuals, managed to collect around five 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 things that they were formerly using it for," said [Greg Archer](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) with [Transport](https://pitchbook.com/profiles/company/51278-86) & Environment.
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"And they're just buying more virgin oil which virgin oil is largely palm oil, because that's the most inexpensive oil offered.
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"So indirectly, we're simply motivating more logging in Southeast Asia."
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Another significant problem with UCO is the suspicion of fraud.
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Because of demand from Europe, the rate of UCO is often greater than palm oil. The worry is that some dishonest traders are merely diluting deliveries of UCO with palm.
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As oils of various types are mixed in bulk for transportation, and no testing of the products is carried out, some experts believe scams is swarming.
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The suggestion of scams anywhere along the chain of supply is declined by the European Waste-to-Advanced Biofuels Association (EWABA), who say there are robust accreditation schemes in location.
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"It is widely known that the European Commission has taken pertinent steps to completely suppress [unsound market](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) practices in [biofuel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) markets," said Angel Alberdi, EWABA's secretary general.
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He states a brand-new database being established by the EU will guarantee that trading, accreditation and sustainability information on all bio-liquids will need to be signed up.
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"The mix of modified accreditation schemes and the pan-EU track and trace database will ensure that no sustainability issues develop in the whole biofuels and [bio-liquids supply](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) chain," he informed BBC News.
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Others in the field are worried that the database concept, which was very first mooted in 2018, might not be reliable in stemming believed fraud.
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The report from Transport & Environment mentions that with shipping and aviation seeking to decarbonise by utilizing biofuels, demand for UCO could double over the next years.
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"Rising the demand beyond sustainable supply levels would [increase](https://www.bloomberg.com/profile/company/MNELF:US) these concerns, and dangers of [utilizing 'fake'](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) UCO, possibly resulting in indirect effects such as deforestation."
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Follow Matt on Twitter @mattmcgrathbbc, external.
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Related subjects
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COP26
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Paris environment arrangement
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Climate
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