Biofuels: 'Irrational' and 'worse than fossil fuels'

The UK's "unreasonable" use of biofuels will cost motorists around ₤ 460 million over the next 12 months, a think tank states.

A report by Chatham House, external says the growing reliance on sustainable liquid fuels will also increase food costs.

The author says that biodiesel made from vegetable oil was even worse for the climate than fossil fuels.

Under EU law, external, biofuels are set to make up 5% of the UK's transport fuel from today.

Since 2008, the UK has actually required fuel suppliers to add a growing proportion of sustainable materials into the fuel and diesel they provide. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research carried out for Chatham House states that reaching the 5% level suggests that UK vehicle drivers will have to pay an extra ₤ 460m a year since of the greater cost of fuel at the pump and from filling up more frequently as biofuels have a lower energy material.

The report say that if the UK is to satisfy its obligations to EU energy targets the expense to drivers is most likely to increase to ₤ 1.3 bn per year by 2020.

"It is tough to find any excellent news," Rob Bailey, senior research study fellow at Chatham House, told BBC News.

"Biofuels increase expenses and they are an extremely expensive way to lower carbon emissions," he said.

The EU biofuel mandates are also having hugely distorting effects in the market. Because used cooking oil is concerned as one of the most sustainable kinds of biodiesel, the rate for it has risen rapidly. Rob Bailey says that towards completion of 2012 it was more costly than refined palm oil.

"It develops a financial incentive to buy refined palm oil, cook a chip in it to turn it into used cooking oil and then sell it at profit,"

"It is insane but the rewards exist."

There are also worries that taking EU land out of production to grow rapeseed oil in specific is producing more climate issues than it resolves. The more fuel of this type that is taken into cars and trucks the larger the deficit developed in the edible oils market. This had actually lead to increased imports of palm oil from Indonesia, frequently produced on deforested land.

"Once you take into account these indirect effects, biofuels made from veggie oils in fact result worldwide in more emissions than you would receive from using diesel in the first place," said Rob Bailey.

"Plus you are asking drivers to pay more for the fuel - it makes no sense, it is a completely unreasonable technique."

Biofuel advantages

The European Biodiesel Board (EBB), which represents the market, external across the EU, stated it knew the problems triggered by the required. But it thinks that biofuels have lots of positives.

"Blaming biofuels for all the problems on the planet is a bit too overstated," said Isabelle Maurizi, job supervisor at the EBB.

"It has actually brought lots of benefits. It has actually improved the security of our diesel