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Climate 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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354 Comments
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New research study questions the [environmental impact](https://www.zoominfo.com/c/mission-newenergy/346542889) of increasing imports of utilized cooking oil (UCO) into the UK and Europe.
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Chip fat and other oils are considered waste, so when they are used to make [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) it saves carbon emissions by displacing fossil oil.
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But such is the need throughout Europe that imports now account for over half of the UCO that's made into fuel.
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According to the research study, external, there's no method to show these imports are sustainable.
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Without any screening of what's being available in, professionals think it is also ripe for fraud.
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Used cooking oil imports might improve deforestation
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Consumers position 'growing hazard' to tropical forests
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[Reducing emissions](https://www.pinterest.com.au/missionnewenergy/) from transport is proving to be among the most difficult obstacles for federal [governments](https://www.crunchbase.com/organization/mission-newenergy) all over the world.
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They've motivated using biofuels as an essential methods of curbing carbon from cars and trucks and trucks.
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Biofuels are generally a blend of nonrenewable fuel 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 [implies](https://www.crunchbase.com/organization/mission-newenergy) they cancel out the carbon discharged when utilized in engines.
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Soy and palm oil were when widely utilized as parts of [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) however this practice has been since it [motivates logging](https://www.google.com/search?kgmid=/m/0cqd_rb).
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So for the last years or so, the usage of utilized cooking oil has expanded massively as an alternative feedstock for fuel.
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Chip fat and other waste oils have actually ended up being an essential component of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) with an efficient industry springing up throughout Europe to collect and process the product.
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But with the amount of [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) made from UCO increasing by around 40% every year because 2014, there merely isn't adequate [chip fat](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) to go around.
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According to a report from the campaign group Transport & Environment, external, over half of the UCO used in Europe is imported.
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Their study suggests this is highly bothersome when it comes to influence on the environment.
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While UCO is thought about a waste material in the UK, in China, [Indonesia](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) and Malaysia it has long been utilized to [feed animals](https://www.crunchbase.com/organization/mission-newenergy). The report raises the question of what individuals in these nations are changing the UCO with, when it is exported.
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In 2019, Malaysia exported 90 million litres of UCO to the UK and Ireland. Figures for their [exports](https://www.businessnews.com.au/Company/Mission-NewEnergy) to other European countries aren't readily available however the flow of UCO is most likely to be comparable.
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With a [population](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) of around 33 million, that's close to three litres per head of used oil that's collected and [exported](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) to the UK and Ireland alone.
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By comparison, Thailand, which has a population of 70 million people, handled to collect around five million litres of UCO in 2019.
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"Because we are purchasing it, they have actually less utilized cooking oil to use on the things that they were formerly utilizing it for," said [Greg Archer](https://forest500.org/rankings/companies/mission-newenergy-limited) with Transport & Environment.
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"And they're simply purchasing more virgin oil which virgin oil is mostly palm oil, because that's the most inexpensive oil available.
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"So indirectly, we're simply motivating more deforestation in Southeast Asia."
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Another significant issue with UCO is the suspicion of fraud.
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Because of demand from Europe, the price of UCO is frequently higher than palm oil. The worry is that some unethical traders are merely diluting shipments of UCO with palm.
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As oils of different types are blended in bulk for transport, and no screening of the materials is brought out, some specialists believe scams is swarming.
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The tip of scams 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 place.
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"It is [commonly](https://www.bloomberg.com/profile/company/MNELF:US) understood that the European Commission has taken relevant actions to completely curb unsound market practices in [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) markets," stated Angel Alberdi, EWABA's secretary general.
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He says a new database being established by the EU will make sure that trading, certification and sustainability information on all bio-liquids will need to be signed up.
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"The mix of modified certification plans and the pan-EU track and trace database will ensure that no sustainability problems develop in the entire biofuels and [bio-liquids supply](https://www.pinterest.com.au/missionnewenergy/) chain," he informed BBC News.
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Others in the field are concerned that the database concept, which was first mooted in 2018, might not work in stemming believed fraud.
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The report from Transport & Environment explains that with shipping and air travel wanting to decarbonise by utilizing biofuels, demand for UCO might double over the next decade.
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"Rising the demand beyond sustainable supply levels would increase these issues, and dangers of using 'phony' UCO, possibly causing indirect [impacts](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) such as logging."
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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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