In an era where sustainability and waste reduction are essential, used cooking oil has emerged as alternative resource which is economically feasible. Used cooking oil is no longer only a byproduct of the culinary world that goes down the drain; it is increasingly recognized for its wide range of uses and possible environmental advantages. Biodiesel is a renewable, biodegradable fuel for diesel engines that reduces reliance on fossil fuels and greenhouse gas emissions.
Recent times, China has emerged as a largest Used Cooking Oil (UCO) exporter to USA, Chinese exports to USA reached $201 million in the first 3 months of this year, which was rise from last year, which was only $ 700 million for whole 2023 year.
With the increased import of UCO by US Biodiesel plants, U.S Soybean growers and other crops, which are used in production of Biodiesel, started to lose the most from these imports.
According to US International Trade Commission, U.S imports of UCO was tripled in 2023 from a year earlier with more than coming from China.
Not only, IN U.S, even in Europe the demand for UCO is increasing, according to the statistics, Europe uses around 130 thousand barrels of UCO per days, which is 8 times higher than it acquire, similarly where U.S burns 40 thousand barrels per day.
Even though, National Oilseeds Processors Association in the United States is called for greater taxes on Chinese used cooking oil (UCO), claiming that it harms US biofuel production. NOPA planned to boost the current 15.5 percent fee to match tariffs for other clean energy sources yet, White House announced higher duties on Chinese goods, but did not include used cooking oil, which caused serious concerns to soybean growers of USA.
Biofuel Plant of USA defended Chinese Used Cooking Oil (UCO) Imports, as China has 126 Lakh Restaurants, Where the USA has only 7 Lakh, it’s one of the major reasons for the China to hold a plenty of UCO, as the US biofuel Industry is focused on Cheaper raw materials.
Finally, the surge in used cooking oil (UCO) shipments from China to the United States and Europe underlines the biodiesel industry’s prospects and challenges. While UCO offers a sustainable alternative to fossil fuels and helps to reduce greenhouse gas emissions, its rising importation has raised worries among domestic biofuel producers, particularly soybean growers in the United States. The debate over tariffs and trade policies highlights the challenges of balancing economic incentives with environmental aims. Moving forward, stakeholders must work together to develop solutions that support both sustainable energy practices and fair competition in the global marketplace.
Source:transportenvironment,qcintel,fortune