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Climate modification: Growing doubts over chip fat [biofuel](https://www.businessnews.com.au/Company/Mission-NewEnergy)
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21 April 2021
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remarks
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354 Comments
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New research concerns the ecological effect 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 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 oil.
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But such is the demand 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 other way to show these imports are sustainable.
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With no screening of what's being available in, professionals think it is also ripe for fraud.
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Used cooking oil imports might increase logging
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Consumers position 'growing risk' to tropical forests
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Reducing emissions from transport is proving to be one of the most difficult obstacles for governments all over the world.
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They've motivated the usage of biofuels as an essential ways of curbing carbon from vehicles and trucks.
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Biofuels are generally a mix of nonrenewable fuel source and oil made from plants or veggies.
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The fact that these crops can be re-grown and take in more CO2 means they counteract the carbon produced when utilized in engines.
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Soy and palm oil were once widely utilized as parts of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) but this practice has actually been commonly rejected due to the fact that it [encourages deforestation](https://pitchbook.com/profiles/company/51278-86).
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So for the last years or so, the usage of utilized cooking oil has expanded enormously as an alternative feedstock for fuel.
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Chip fat and other [waste oils](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) have actually become a crucial component of with a reliable market [springing](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) up across Europe to gather and process the item.
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But with the amount of [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) made from UCO increasing by around 40% every year considering that 2014, there just isn't sufficient chip fat to walk around.
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According to a report from the project group Transport & Environment, external, more than half of the [UCO utilized](https://www.google.com/search?kgmid=/m/0cqd_rb) in Europe is imported.
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Their research study recommends this is highly bothersome when it concerns influence on the [environment](https://www.crunchbase.com/organization/mission-newenergy).
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While UCO is thought about a [waste material](https://www.crunchbase.com/organization/mission-newenergy) in the UK, in China, Indonesia and Malaysia it has actually long been used to feed animals. The report raises the [question](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) of what people in these countries are replacing 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 to other European countries aren't offered however 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 used oil that's gathered and exported to the UK and [Ireland](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) alone.
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By contrast, Thailand, which has a population of 70 million individuals, [managed](https://pitchbook.com/profiles/company/51278-86) to collect around five million litres of UCO in 2019.
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"Because we are buying it, they have actually less used cooking oil to use on the important things that they were formerly utilizing it for," stated Greg Archer with Transport & Environment.
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"And they're simply buying more virgin oil which virgin oil is mainly palm oil, because that's the most affordable oil readily available.
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"So indirectly, we're [simply motivating](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) more [deforestation](https://www.bloomberg.com/profile/company/MNELF:US) in Southeast Asia."
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Another major issue with UCO is the suspicion of fraud.
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Because of demand from Europe, the cost of UCO is often greater than palm oil. The concern is that some unethical traders are simply watering down shipments of UCO with palm.
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As oils of various types are mixed in bulk for transport, and no screening of the products is performed, some specialists think scams is swarming.
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The suggestion of scams anywhere along the chain of supply is rejected by the European Waste-to-Advanced Biofuels Association (EWABA), who say there are robust accreditation plans in place.
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"It is extensively known that the European Commission has taken appropriate actions to completely suppress unsound market practices in [biofuel](https://stocktwits.com/symbol/MNEL) markets," said Angel Alberdi, EWABA's secretary general.
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He states a brand-new database being established by the EU will ensure that trading, certification and sustainability information on all bio-liquids will need to be registered.
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"The [combination](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) of revised accreditation plans and the pan-EU track and trace [database](https://pitchbook.com/profiles/company/51278-86) will ensure that no sustainability concerns occur in the entire biofuels and [bio-liquids supply](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) 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, may not work in stemming suspected fraud.
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The report from Transport & Environment points out that with shipping and air travel seeking to decarbonise by using biofuels, need for UCO might double over the next decade.
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"Rising the need beyond [sustainable supply](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) levels would [increase](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) these issues, and risks of using 'phony' UCO, potentially causing indirect impacts 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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