parent
ea8b375b81
commit
6d6a3f0632
@ -1,43 +1,43 @@ |
||||
<br>Climate change: Growing doubts over chip fat [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html)<br> |
||||
<br>Climate modification: Growing doubts over chip fat [biofuel](https://stocktwits.com/symbol/MNEL)<br> |
||||
<br>21 April 2021<br> |
||||
<br>comments<br> |
||||
<br>354 Comments<br> |
||||
<br>New research [study concerns](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) the ecological impact of increasing imports of [utilized cooking](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) oil (UCO) into the UK and Europe.<br> |
||||
<br>[Chip fat](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) and other oils are thought about 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.<br> |
||||
<br>But such is the need throughout Europe that [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) now [account](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) for more than half of the UCO that's made into fuel.<br> |
||||
<br>According to the research study, external, there's no way to prove these imports are sustainable.<br> |
||||
<br>With no screening of what's can be found in, [experts](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) believe it is also ripe for fraud.<br> |
||||
<br>Used cooking oil imports might enhance deforestation<br> |
||||
<br>[Consumers posture](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) 'growing threat' to tropical forests<br> |
||||
<br>Reducing emissions from transport is to be among the toughest challenges for governments all over the world.<br> |
||||
<br>They have actually motivated making use of biofuels as a crucial methods of suppressing carbon from automobiles and trucks.<br> |
||||
<br>Biofuels are typically a blend of fossil fuel and oil made from plants or veggies.<br> |
||||
<br>The fact that these crops can be re-grown and absorb more CO2 suggests they counteract the carbon given off when [utilized](https://www.bloomberg.com/profile/company/MNELF:US) in engines.<br> |
||||
<br>Soy and palm oil were once [commonly](https://www.zoominfo.com/c/mission-newenergy/346542889) utilized as [elements](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 [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) however this practice has actually been widely challenged due to the fact that it encourages logging.<br> |
||||
<br>So for the last decade or two, making use of used cooking oil has actually expanded massively as an alternative feedstock for fuel.<br> |
||||
<br>[Chip fat](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) and other waste oils have ended up being an essential component of [biodiesel](https://www.pinterest.com.au/missionnewenergy/) with an efficient market emerging throughout Europe to gather and process the item.<br> |
||||
<br>But with the quantity of [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) made from UCO increasing by around 40% every year considering that 2014, there merely isn't adequate chip fat to go around.<br> |
||||
<br>According to a report from the project group Transport & Environment, external, majority of the UCO used in Europe is imported.<br> |
||||
<br>Their research study recommends this is extremely bothersome when it pertains to impacts on the environment.<br> |
||||
<br>While UCO is considered a waste product in the UK, in China, Indonesia and Malaysia it has actually long been utilized to feed animals. The report raises the concern of what individuals in these nations are changing the UCO with, when it is exported.<br> |
||||
<br>In 2019, [Malaysia exported](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) 90 million litres of UCO to the UK and Ireland. Figures for their exports to other European nations aren't readily available however the flow of UCO is likely to be comparable.<br> |
||||
<br>With a population of around 33 million, that's close to 3 litres per head of utilized oil that's gathered and exported to the UK and Ireland alone.<br> |
||||
<br>By contrast, Thailand, which has a population of 70 million people, [managed](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) to [collect](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) around five million litres of UCO in 2019.<br> |
||||
<br>"Because we are purchasing it, they have actually less utilized cooking oil to utilize on the important things that they were previously utilizing it for," said Greg Archer with Transport & Environment.<br> |
||||
<br>"And they're simply purchasing more virgin oil and that virgin oil is mostly palm oil, since that's the most affordable oil readily available.<br> |
||||
<br>"So indirectly, we're just motivating more deforestation in Southeast Asia."<br> |
||||
<br>Another major problem with UCO is the suspicion of scams.<br> |
||||
<br>Because of need from Europe, the cost of UCO is typically greater than palm oil. The worry is that some dishonest traders are simply watering down shipments of UCO with palm.<br> |
||||
<br>As oils of various types are blended in bulk for transportation, and no testing of the products is brought out, some professionals think fraud is swarming.<br> |
||||
<br>The tip of scams anywhere along the chain of supply is rejected by the European Waste-to-Advanced Biofuels Association (EWABA), who state there are robust accreditation plans in place.<br> |
||||
<br>"It is extensively known that the European Commission has actually taken appropriate actions to totally suppress unsound market practices in [biofuel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) markets," said Angel Alberdi, EWABA's secretary general.<br> |
||||
<br>He says a brand-new database being developed by the EU will ensure that trading, certification and sustainability information on all bio-liquids will need to be signed up.<br> |
||||
<br>"The combination of revised certification plans and the pan-EU track and trace database will make sure that no sustainability problems develop in the whole biofuels and bio-liquids supply chain," he told BBC News.<br> |
||||
<br>Others in the field are concerned that the database concept, which was first mooted in 2018, may not be effective in stemming presumed scams.<br> |
||||
<br>The report from Transport & Environment mentions that with shipping and aviation wanting to decarbonise by utilizing biofuels, need for UCO might double over the next years.<br> |
||||
<br>"Rising the need beyond sustainable supply levels would [increase](https://www.businessnews.com.au/Company/Mission-NewEnergy) these issues, and dangers of using 'phony' UCO, possibly leading to indirect impacts such as logging."<br> |
||||
<br>New research concerns the ecological effect of [increasing imports](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) of utilized cooking oil (UCO) into the UK and Europe.<br> |
||||
<br>[Chip fat](https://www.zoominfo.com/c/mission-newenergy/346542889) and other oils are considered waste, so when they are used to make [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) it saves carbon [emissions](https://www.crunchbase.com/organization/mission-newenergy) by [displacing fossil](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) oil.<br> |
||||
<br>But such is the demand across Europe that imports now represent majority of the UCO that's made into fuel.<br> |
||||
<br>According to the research study, external, there's no chance to prove these imports are sustainable.<br> |
||||
<br>Without any screening of what's coming in, [professionals](https://stocktwits.com/symbol/MNEL) think it is likewise ripe for scams.<br> |
||||
<br>Used cooking oil imports may enhance deforestation<br> |
||||
<br>Consumers pose 'growing danger' to tropical forests<br> |
||||
<br>Reducing emissions from transport is proving to be one of the most difficult challenges for federal governments all over the world.<br> |
||||
<br>They have actually encouraged using biofuels as an essential ways of suppressing carbon from cars and trucks and lorries.<br> |
||||
<br>Biofuels are usually a mix of nonrenewable fuel source and oil made from plants or veggies.<br> |
||||
<br>The fact that these crops can be re-grown and absorb more CO2 implies they cancel out the carbon discharged when utilized in engines.<br> |
||||
<br>Soy and palm oil were as soon as extensively used as elements of [biodiesel](https://www.pinterest.com.au/missionnewenergy/) but this practice has been commonly rejected since it [encourages](https://www.businessnews.com.au/Company/Mission-NewEnergy) logging.<br> |
||||
<br>So for the last years or so, making use of used cooking oil has actually broadened massively as an [alternative feedstock](https://www.pinterest.com.au/missionnewenergy/) for fuel.<br> |
||||
<br>Chip fat and other waste oils have ended up being an essential part of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) with a reliable industry emerging throughout Europe to collect and process the product.<br> |
||||
<br>But with the amount of [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) made from by around 40% every year because 2014, there just isn't [sufficient chip](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) fat to go around.<br> |
||||
<br>According to a report from the project group Transport & Environment, external, more than half of the UCO used in Europe is [imported](https://www.google.com/search?kgmid=/m/0cqd_rb).<br> |
||||
<br>Their research study recommends this is highly problematic when it [concerns influence](https://www.crunchbase.com/organization/mission-newenergy) on the environment.<br> |
||||
<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 concern of what people in these countries are changing 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 countries aren't offered but the flow of UCO is most likely to be similar.<br> |
||||
<br>With a [population](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 around 33 million, that's close to three litres per head of utilized oil that's gathered and exported to the UK and Ireland alone.<br> |
||||
<br>By comparison, Thailand, which has a population of 70 million people, [handled](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) to gather around five million litres of UCO in 2019.<br> |
||||
<br>"Because we are buying it, they have less used cooking oil to use on the important things that they were previously using it for," said Greg Archer with Transport & [Environment](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm).<br> |
||||
<br>"And they're simply buying more virgin oil which virgin oil is largely palm oil, because that's the cheapest oil readily available.<br> |
||||
<br>"So indirectly, we're [simply encouraging](https://stocktwits.com/symbol/MNEL) more deforestation in Southeast Asia."<br> |
||||
<br>Another major problem with UCO is the suspicion of fraud.<br> |
||||
<br>Because of demand from Europe, the cost of UCO is typically greater than palm oil. The concern is that some unscrupulous traders are just watering down deliveries of UCO with palm.<br> |
||||
<br>As oils of various types are blended in bulk for transportation, and no screening of the products is brought out, some specialists think scams is swarming.<br> |
||||
<br>The tip of scams 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> |
||||
<br>"It is extensively known that the European Commission has taken appropriate steps 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.<br> |
||||
<br>He says a new database being established by the EU will make sure that trading, certification and sustainability data on all bio-liquids will need to be signed up.<br> |
||||
<br>"The mix of modified accreditation plans and the pan-EU track and trace database will guarantee that no sustainability problems arise in the whole biofuels and bio-liquids supply chain," he told BBC News.<br> |
||||
<br>Others in the field are concerned that the database idea, which was very first mooted in 2018, may not be effective in stemming suspected fraud.<br> |
||||
<br>The report from Transport & Environment explains that with shipping and air travel aiming to decarbonise by utilizing biofuels, demand for UCO might double over the next decade.<br> |
||||
<br>"Rising the need beyond sustainable supply levels would [increase](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) these concerns, and dangers of using 'phony' UCO, possibly resulting in indirect effects such as deforestation."<br> |
||||
<br>Follow Matt on Twitter @mattmcgrathbbc, external.<br> |
||||
<br>Related subjects<br> |
||||
<br>Related topics<br> |
||||
<br>COP26<br> |
||||
<br>Paris climate agreement<br> |
||||
<br>Climate<br> |
||||
Loading…
Reference in new issue