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Climate modification: Growing doubts over chip fat [biofuel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile)
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21 April 2021
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comments
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354 Comments
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New research questions the ecological effect of [increasing imports](https://pitchbook.com/profiles/company/51278-86) of utilized cooking oil (UCO) into the UK and Europe.
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[Chip fat](https://www.businessnews.com.au/Company/Mission-NewEnergy) and other oils are considered waste, so when they are utilized to make [biodiesel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) it conserves carbon emissions by displacing fossil oil.
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But such is the need across Europe that imports now represent more than half of the UCO that's made into fuel.
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According to the research study, external, there's no chance to show these imports are sustainable.
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Without any screening of what's can be found in, [specialists](https://www.businessnews.com.au/Company/Mission-NewEnergy) think it is likewise ripe for fraud.
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Used [cooking oil](https://pitchbook.com/profiles/company/51278-86) imports may increase deforestation
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Consumers present 'growing threat' to tropical forests
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Reducing emissions from transport is proving to be one of the toughest difficulties for governments all over the world.
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They've encouraged using biofuels as a crucial means of curbing carbon from automobiles and lorries.
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Biofuels are generally a mix of fossil fuel and oil made from plants or veggies.
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The reality that these crops can be re-grown and absorb more CO2 implies they cancel out the carbon given off when utilized in [engines](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).
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Soy and [palm oil](https://forest500.org/rankings/companies/mission-newenergy-limited) were when [extensively](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) utilized as components of [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) however this practice has actually been extensively challenged since it encourages logging.
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So for the last decade or two, using utilized cooking oil has actually expanded massively as an alternative feedstock for fuel.
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Chip fat and other waste oils have actually become a key part of [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) with an efficient industry [emerging](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) throughout Europe to gather and process the item.
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But with the quantity of made from UCO increasing by around 40% every year considering that 2014, there merely isn't adequate chip fat to walk around.
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According to a report from the project group Transport & Environment, external, over half of the UCO used in Europe is imported.
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Their study recommends this is highly bothersome when it pertains to influence on the environment.
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While UCO is thought about a waste material in the UK, in China, Indonesia and Malaysia it has long been used to feed animals. The [report raises](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) the question 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 circulation of UCO is likely to be similar.
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With a [population](https://www.crunchbase.com/organization/mission-newenergy) of around 33 million, that's close to 3 litres per head of used oil that's gathered and exported to the UK and Ireland alone.
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By contrast, Thailand, which has a population of 70 million people, managed to gather around five million litres of UCO in 2019.
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"Because we are buying it, they have less used cooking oil to use on the things that they were formerly utilizing it for," said Greg Archer with Transport & [Environment](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd).
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"And they're simply purchasing more virgin oil which virgin oil is mostly palm oil, since that's the most affordable oil readily available.
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"So indirectly, we're just motivating more logging 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 rate of UCO is typically higher than palm oil. The concern is that some dishonest traders are just diluting shipments of UCO with palm.
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As oils of various types are blended in bulk for transportation, and no testing of the products is performed, some experts believe fraud is swarming.
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The tip 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 schemes in place.
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"It is [extensively](https://www.businessnews.com.au/Company/Mission-NewEnergy) known that the European Commission has taken pertinent steps to entirely curb unsound market practices in [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889) markets," stated Angel Alberdi, EWABA's secretary general.
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He says a new database being developed by the EU will make sure that trading, certification and sustainability data on all bio-liquids will have to be signed up.
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"The mix of revised accreditation schemes and the pan-EU track and trace database will guarantee that no sustainability problems occur in the entire [biofuels](https://forest500.org/rankings/companies/mission-newenergy-limited) and [bio-liquids supply](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) chain," he told BBC News.
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Others in the field are concerned that the database concept, which was very first mooted in 2018, might not work in stemming believed fraud.
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The report from Transport & Environment points out that with shipping and air travel looking to decarbonise by utilizing biofuels, need for UCO could double over the next decade.
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"Rising the need beyond [sustainable supply](https://forest500.org/rankings/companies/mission-newenergy-limited) levels would increase these issues, and risks of using ['phony'](https://pitchbook.com/profiles/company/51278-86) UCO, possibly causing indirect effects 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 climate contract
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Climate
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