1 changed files with 43 additions and 0 deletions
@ -0,0 +1,43 @@ |
|||
<br>Climate change: Growing doubts over [chip fat](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) [biofuel](https://stocktwits.com/symbol/MNEL)<br> |
|||
<br>21 April 2021<br> |
|||
<br>remarks<br> |
|||
<br>354 Comments<br> |
|||
<br>New research study questions the ecological impact of increasing imports of used cooking oil (UCO) into the UK and Europe.<br> |
|||
<br>[Chip fat](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) 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 conserves carbon emissions by displacing fossil oil.<br> |
|||
<br>But such is the need throughout Europe that imports now account for majority of the UCO that's made into fuel.<br> |
|||
<br>According to the study, external, there's no chance to show these imports are sustainable.<br> |
|||
<br>Without any testing of what's coming in, specialists think it is also ripe for scams.<br> |
|||
<br>Used cooking oil imports may boost deforestation<br> |
|||
<br>Consumers present 'growing hazard' to tropical forests<br> |
|||
<br>Reducing emissions from transport is proving to be among the toughest obstacles for governments all over the world.<br> |
|||
<br>They have actually motivated making use of biofuels as a crucial methods of [curbing carbon](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) from cars and lorries.<br> |
|||
<br>Biofuels are generally a blend of [nonrenewable fuel](https://www.crunchbase.com/organization/mission-newenergy) source and oil made from plants or [vegetables](https://www.zoominfo.com/c/mission-newenergy/346542889).<br> |
|||
<br>The fact that these crops can be re-grown and absorb more CO2 indicates they counteract the carbon produced when utilized in engines.<br> |
|||
<br>Soy and [palm oil](https://www.businessnews.com.au/Company/Mission-NewEnergy) were as soon as widely used as elements of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) however this practice has been widely discredited since it encourages logging.<br> |
|||
<br>So for the last decade approximately, making use of used cooking oil has expanded enormously as an alternative for fuel.<br> |
|||
<br>Chip fat and other waste oils have actually ended up being a key element of [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) with an effective industry emerging across Europe to gather and process the item.<br> |
|||
<br>But with the quantity 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 merely isn't enough chip fat to walk around.<br> |
|||
<br>According to a report from the project group Transport & Environment, external, more than half of the [UCO utilized](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) in Europe is imported.<br> |
|||
<br>Their study suggests this is extremely problematic when it pertains to effect on the [environment](https://stocktwits.com/symbol/MNEL).<br> |
|||
<br>While UCO is thought about a waste material in the UK, in China, Indonesia and Malaysia it has actually long been used to [feed animals](https://forest500.org/rankings/companies/mission-newenergy-limited). The report raises the concern of what individuals in these nations are [replacing](https://www.bloomberg.com/profile/company/MNELF:US) the UCO with, when it is exported.<br> |
|||
<br>In 2019, Malaysia exported 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European nations aren't readily available however the [circulation](https://www.zoominfo.com/c/mission-newenergy/346542889) of UCO is most likely to be similar.<br> |
|||
<br>With a population of around 33 million, that's close to three litres per head of utilized oil that's gathered and [exported](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) to the UK and Ireland alone.<br> |
|||
<br>By contrast, Thailand, which has a population of 70 million people, [handled](https://www.crunchbase.com/organization/mission-newenergy) to gather around five million litres of UCO in 2019.<br> |
|||
<br>"Because we are purchasing it, they have less utilized cooking oil to utilize on the things that they were formerly utilizing it for," stated Greg Archer with Transport & [Environment](https://www.zoominfo.com/c/mission-newenergy/346542889).<br> |
|||
<br>"And they're simply buying more virgin oil and that virgin oil is largely palm oil, because that's the cheapest oil readily available.<br> |
|||
<br>"So indirectly, we're simply motivating more deforestation in Southeast Asia."<br> |
|||
<br>Another significant problem with UCO is the suspicion of fraud.<br> |
|||
<br>Because of need from Europe, the price of UCO is often greater than palm oil. The worry is that some unethical traders are simply diluting deliveries of UCO with palm.<br> |
|||
<br>As oils of various types are blended in bulk for transportation, and no testing of the materials is brought out, some professionals believe fraud is rife.<br> |
|||
<br>The idea of fraud anywhere along the chain of supply is declined by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust certification plans in place.<br> |
|||
<br>"It is extensively known that the European Commission has taken pertinent actions to totally curb unsound market practices in [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) markets," stated Angel Alberdi, EWABA's secretary general.<br> |
|||
<br>He states a new database being developed by the EU will guarantee that trading, accreditation and sustainability data on all bio-liquids will have to be registered.<br> |
|||
<br>"The mix of modified certification [schemes](https://www.pinterest.com.au/missionnewenergy/) and the pan-EU track and trace database will ensure that no sustainability issues occur in the whole biofuels and bio-liquids supply chain," he informed BBC News.<br> |
|||
<br>Others in the field are worried that the database concept, which was very first mooted in 2018, might not be reliable in stemming presumed fraud.<br> |
|||
<br>The report from Transport & Environment points out that with shipping and aviation wanting to decarbonise by using biofuels, need for UCO might double over the next decade.<br> |
|||
<br>"Rising the need beyond sustainable supply levels would increase these concerns, and threats of utilizing 'fake' UCO, possibly resulting in indirect effects such as deforestation."<br> |
|||
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br> |
|||
<br>Related subjects<br> |
|||
<br>COP26<br> |
|||
<br>Paris climate agreement<br> |
|||
<br>Climate<br> |
|||
Loading…
Reference in new issue