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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>remarks<br>
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<br>354 Comments<br>
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<br>New research questions the ecological impact of increasing imports of utilized cooking oil (UCO) into the UK and Europe.<br>
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<br>[Chip fat](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) and other oils are considered waste, so when they are utilized to make [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) it conserves carbon emissions by [displacing fossil](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) oil.<br>
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<br>But such is the demand throughout Europe that imports now represent 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 other way to show these imports are sustainable.<br>
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<br>Without any testing of what's being available in, experts think it is likewise ripe for fraud.<br>
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<br>Used cooking oil imports might boost deforestation<br>
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<br>[Consumers position](https://pitchbook.com/profiles/company/51278-86) 'growing threat' to tropical forests<br>
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<br> from transport is showing to be one of the hardest difficulties for federal governments all over the world.<br>
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<br>They have actually motivated making use of biofuels as a crucial methods of suppressing carbon from [vehicles](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) and trucks.<br>
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<br>[Biofuels](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) are normally a blend of [fossil fuel](https://www.google.com/search?kgmid=/m/0cqd_rb) and oil made from plants or [vegetables](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).<br>
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<br>The truth that these crops can be re-grown and absorb more CO2 [suggests](https://stocktwits.com/symbol/MNEL) they cancel out the carbon discharged when utilized in engines.<br>
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<br>Soy and palm oil were when commonly utilized as components of [biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) however this practice has actually been commonly challenged since it motivates logging.<br>
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<br>So for the last years or two, the usage of utilized cooking oil has actually expanded massively as an alternative feedstock for fuel.<br>
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<br>[Chip fat](https://www.pinterest.com.au/missionnewenergy/) and other waste oils have become a crucial part of [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) with an effective market emerging across Europe to collect and [process](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) the product.<br>
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<br>But with the quantity of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) made from UCO increasing by around 40% every year given that 2014, there merely isn't sufficient [chip fat](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) to go around.<br>
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<br>According to a report from the [campaign](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) group [Transport](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) & Environment, external, more than half of the UCO utilized in Europe is imported.<br>
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<br>Their study recommends this is extremely troublesome when it pertains to impacts on the environment.<br>
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<br>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 the concern of what individuals in these countries 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 available but the flow of UCO is likely to be [comparable](https://www.zoominfo.com/c/mission-newenergy/346542889).<br>
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<br>With a population of around 33 million, that's close to three litres per head of utilized oil that's [gathered](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) and exported to the UK and Ireland alone.<br>
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<br>By comparison, Thailand, which has a population of 70 million people, handled to collect around 5 million litres of UCO in 2019.<br>
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<br>"Because we are purchasing it, they have less used cooking oil to utilize on the important things that they were formerly utilizing it for," said Greg Archer with Transport & Environment.<br>
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<br>"And they're simply buying more virgin oil and that virgin oil is mostly palm oil, because that's the most inexpensive oil readily available.<br>
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<br>"So indirectly, we're just encouraging more logging in Southeast Asia."<br>
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<br>Another major issue with UCO is the suspicion of fraud.<br>
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<br>Because of demand from Europe, the rate of UCO is frequently higher than palm oil. The concern is that some unscrupulous traders are merely watering down shipments of UCO with palm.<br>
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<br>As oils of different types are mixed in bulk for transport, and no screening of the materials is brought out, some experts think fraud is swarming.<br>
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<br>The recommendation of fraud anywhere along the chain of supply is declined by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust accreditation schemes in location.<br>
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<br>"It is extensively understood that the European Commission has actually taken pertinent actions to totally curb unsound market practices in [biofuel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) markets," said Angel Alberdi, EWABA's secretary general.<br>
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<br>He says a brand-new database being developed by the EU will ensure that trading, accreditation and sustainability information on all bio-liquids will need to be registered.<br>
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<br>"The combination of modified certification plans and the pan-EU track and trace database will guarantee that no sustainability issues occur in the entire 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 first mooted in 2018, may not be effective in stemming thought scams.<br>
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<br>The report from Transport & Environment points out that with shipping and air travel looking to decarbonise by using biofuels, demand for UCO might double over the next decade.<br>
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<br>"Rising the need beyond sustainable supply levels would increase these issues, and risks of using 'fake' UCO, potentially causing 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 contract<br>
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<br>Climate<br>
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