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<br>[Climate](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) modification: Growing doubts over chip fat [biofuel](https://stocktwits.com/symbol/MNEL)<br> |
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<br>21 April 2021<br> |
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<br>comments<br> |
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<br>354 Comments<br> |
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<br>New research concerns the environmental impact of [rising imports](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) of utilized cooking oil (UCO) into the UK and Europe.<br> |
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<br>Chip fat and other oils are thought about waste, so when they are used to make [biodiesel](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) it saves carbon emissions by displacing fossil oil.<br> |
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<br>But such is the demand throughout Europe that imports now represent over half of the UCO that's made into fuel.<br> |
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<br>According to the study, external, there's no other way to show these imports are sustainable.<br> |
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<br>Without any screening of what's being available in, professionals think it is likewise ripe for fraud.<br> |
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<br>Used cooking oil imports may improve deforestation<br> |
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<br>Consumers pose 'growing danger' to tropical forests<br> |
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<br>Reducing emissions from transportation is proving to be among the hardest obstacles for federal governments all over the world.<br> |
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<br>They have actually motivated using biofuels as an essential ways of from cars and trucks and lorries.<br> |
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<br>Biofuels are usually a blend of nonrenewable fuel source and oil made from plants or [vegetables](https://www.bloomberg.com/profile/company/MNELF:US).<br> |
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<br>The fact that these crops can be re-grown and absorb more CO2 means they counteract the carbon given off when used in [engines](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053).<br> |
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<br>Soy and palm oil were once commonly used as elements of [biodiesel](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) however this [practice](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) has been extensively discredited since it encourages deforestation.<br> |
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<br>So for the last years approximately, using used cooking oil has actually expanded massively as an alternative feedstock for fuel.<br> |
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<br>[Chip fat](https://pitchbook.com/profiles/company/51278-86) and other waste oils have become a key part of [biodiesel](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) with an effective market springing up throughout Europe to collect and [process](https://www.bloomberg.com/profile/company/MNELF:US) the item.<br> |
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<br>But with the quantity of [biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) made from UCO increasing by around 40% every year because 2014, there simply isn't sufficient chip fat to walk around.<br> |
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<br>According to a report from the project group Transport & Environment, external, more than half of the UCO used in Europe is imported.<br> |
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<br>Their study recommends this is extremely problematic when it pertains to effect on the environment.<br> |
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<br>While UCO is considered a waste product in the UK, in China, Indonesia and Malaysia it has long been used to feed animals. The report raises the question of what individuals in these countries are [replacing](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) the UCO with, when it is [exported](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608).<br> |
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<br>In 2019, [Malaysia exported](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) 90 million litres of UCO to the UK and Ireland. Figures for their [exports](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) to other [European nations](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) aren't available however the circulation of UCO is most likely to be comparable.<br> |
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<br>With a population of around 33 million, that's close to 3 litres per head of [utilized oil](https://pitchbook.com/profiles/company/51278-86) that's collected and exported to the UK and Ireland alone.<br> |
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<br>By comparison, Thailand, which has a population of 70 million people, handled to [collect](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) around 5 million litres of UCO in 2019.<br> |
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<br>"Because we are buying it, they have less used cooking oil to utilize on the important things that they were formerly utilizing it for," said Greg Archer with Transport & Environment.<br> |
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<br>"And they're simply purchasing more virgin oil which virgin oil is mainly palm oil, since that's the most inexpensive oil readily available.<br> |
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<br>"So indirectly, we're simply motivating more [logging](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) in Southeast Asia."<br> |
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<br>Another major issue with UCO is the suspicion of fraud.<br> |
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<br>Because of need from Europe, the rate of UCO is often greater than palm oil. The worry is that some unscrupulous traders are simply watering down deliveries of UCO with palm.<br> |
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<br>As oils of various types are mixed in bulk for transportation, and no screening of the materials is performed, some specialists believe fraud is swarming.<br> |
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<br>The suggestion of fraud anywhere along the chain of supply is rejected by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust accreditation schemes in place.<br> |
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<br>"It is commonly known that the European Commission has taken appropriate steps to entirely suppress unsound market practices in [biofuel](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) markets," said Angel Alberdi, EWABA's secretary general.<br> |
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<br>He states a new database being developed by the EU will make sure that trading, accreditation and sustainability data on all bio-liquids will have to be registered.<br> |
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<br>"The combination of revised accreditation plans and the pan-EU track and trace database will guarantee that no sustainability concerns develop in the entire biofuels and bio-liquids supply chain," he informed BBC News.<br> |
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<br>Others in the field are worried that the database idea, which was first mooted in 2018, may not work in stemming presumed fraud.<br> |
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<br>The report from Transport & Environment mentions that with shipping and air travel wanting to decarbonise by utilizing biofuels, need for UCO might double over the next years.<br> |
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<br>"Rising the need beyond sustainable supply levels would increase these issues, and dangers of utilizing 'phony' UCO, potentially leading to indirect effects such as logging."<br> |
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<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br> |
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<br>Related subjects<br> |
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<br>COP26<br> |
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<br>Paris environment agreement<br> |
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<br>Climate<br> |
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