Oil-rich United Arab Emirates looks to biodiesel

It is 11am in Dubai and already 42 degrees Celsius outside. Inside the warehouse it is barely any cooler.

Although workplaces in the United Arab Emirates are normally fitted with air conditioning, here they have purposefully restricted it to the offices. "It's the chemical reactions," Karl Feilder, chairman of Neutral Fuels explains.

"They happen at 65 degrees so by keeping the factory temperature higher we expend less energy on the process. That makes it more efficient. That's better for the environment and it cuts costs."

He is pointing at the thirty metre long collection of industrial tanks and pipes through which the firm's main product is being made. The room smells a bit like a chip shop. There is a reason for that.

These tanks are used to produced biodiesel that can be used by any normal diesel engine They are making biodiesel - converting vegetable oil from local McDonald's restaurants so that it can be used to fuel trucks.

Conversion rate

The biodiesel they produce can be used by any normal diesel engine. That makes it distinct from less processed vegetable and waste oils, which can only be used by converted engines.

Because the palm oil they get from McDonald's is the waste from food preparation, when it is burned the carbon emissions are reduced by 60-80% versus traditional diesel fuel.

Any carbon dioxide released is recaptured by trees McDonald's says are grown sustainably on certified farms in the Far East, providing the next batch of palm oil for use by the fast-food chain.

The oil comes from fast food restaurants like McDonalds Similar biodiesel programs from re-used cooking oil are already in operation by McDonald's in Germany, the UK and also in areas of Brazil and the United States. In the UAE, though, the process works better.

"Biodiesel has an issue depending on what its made from that at low temperatures it will clog up, form a gel and eventually freeze," according to Robin Mills, a Dubai-based energy analyst.

"Of course, low temperatures aren't a problem in this part of the world so it has performance benefits."

But it is not all smooth sailing.

The United Arab Emirates, like most of its neighbours in the Gulf, subsidises and caps the price of fuel at the pump.

That should make it trickier for companies like Neutral Fuels to compete and make a profit.

Karl Feilder: "[The fuel cap means] we have to be even more efficient" "It is challenging but that means we have to be even more efficient and even more competitive," Mr Feilder says.

"The great thing is McDonald's oil is so predictable in terms of high quality and quantity that it makes our job of making biodiesel easier. That helps make us a profitable business."

Still, McDonald's has changed its entire fleet of 22 trucks in the country to use the biofuel.

They pick up the leftover vegetable oil from restaurants when they drop off fresh supplies of food during the day in bright-red converted wheelie bins.

Later, they stop off at the Neutral Fuels, leaving behind the full bins and taking on empty ones. They also top up their tanks from the biodiesel pump by the parking bay. McDonalds used to sell their palm oil to a third party in India who recycled it.

After dropping off the old oil, the McDonalds trucks fill up with biodiesel "Now we sell our oil to Neutral Fuels at the same price we used to sell it for before and we buy the biodiesel from them at the market price of diesel in the UAE, says Rafic Fakih managing director of McDonalds UAE.

"So we are no worse off and gain from the environmental benefits."

Local backing

Given that the United Arab Emirates is the world's eighth largest oil producer, it is perhaps a surprise that the biodiesel project is gaining traction. Other restaurant chains are already expressing an interest in the program.

In this instance, it is perhaps an even bigger surprise that the programme is also backed by Emiratis.

"Nowadays companies are becoming more environmentally conscious and they want to, as much as they can, be environmentally sustainable," says Abdulla Al Jallaf, managing director of Neutral Fuels.

"I think it is a very interesting proposal to make use of waste materials."

Currently, McDonald's is Neutral Fuels only client and they have restricted the project to the UAE. But there are hopes to expand across to the wider region.

With the process profitable for Neutral Fuels and likely to save McDonald's money in the longer run if diesel prices continue to rise, it seems likely its spread will be inevitable.

Good news for the environment, company profits and anyone interested in running their vehicle on the power of French Fries.

Oil on the Po

The Po river, Italy's longest river and known as the lifeline of their agriculture, was deliberately polluted 2 days ago by what the president of the Monza province described as "eco-terrorrists".

The oil-spill, several kilometres long, moved downstream with the Lambro river from Villasanta, crossed the town of Monza, passed by the Milan area and then flowed into the Po. That sounds like a very long way down. The spill involved at least 260,000 gallons of oil made up of diesel and home-heating oil, both known to be heavy and extremely sticky. Despite efforts to contain the slick with absorbent pads and the closure of the hydraulic locks, the oil seeped from the Lambro into the Po. Inhabitants in the region were advised not to drink tap water as it is contaminated.

I cannot imagine the amount of anger and sadness felt by the affected people. How selfish can a person be to cause an oil-spill on water, which is one of the most important source for human lives. We are already depleting our water and food resources and yet there are people out there who would destroy the necessities of life because of them being upset lil brats and wanting to get their message across!

What about the innocent animals or fish that depend on the river for their survival! And of cos the government himself seemed more concerned about how it would affect the country's GDP as it accounts for 40% of Italy's GDP. I would give the perpetrator a good spanking and make him have a taste of his own medicine if it was up to me. This news reallly p****d me off!

My heart goes out to those affected by the oil-spills and of course the lives lost in Chile....

Tips of the Day: Teach your kids young on the importance of recycling and not to be wasteful. Bring them along when you're throwing your recycling away so it'll make it a habit for them.

Global oil reserves and fossil fuel consumption

The world is showing no sign of weaning itself off fossil fuels: in the 28-year span covered by the BP data below, worldwide reserves of oil fell only twice – in 1998 and 2008.

Oil has been the world's fossil fuel of choice since the late 1960s and our taste for it doesn't seem likely to diminish in the short term. Oil companies are still keen to secure any undiscovered reserves while continuing to be a powerful lobbying presence. You may think that with pressing concerns over peak oil and global warming, the world would be slowly weaning itself off the energy-rich liquid. But in the 28-year span covered by the BP data below, worldwide reserves fell only twice – in 1998, and a decade later in 2008.

Opec nations control the lion's share, with 76% of the world's reserves. Interestingly, many of the Opec countries' proven reserves have barely changed in the past 20 years, despite massive exporting activity.

The largest percentage growth in oil wealth is in Vietnam, with a 39% surge in its proven oil reserves from 2007-08. This newfound wealth corresponds to 1.3bn barrels, which may sound like a lot, but would feed the world demand for less than three weeks (17 days) at 2008 levels of consumption.

Oil consumption fell by 0.29% from 2007-08, while its more polluting relation coal saw a 3% increase in its use. Reasons for coal's recent rise include the low price of emissions trading permits and the fuel's increasing promotion as key for 'energy security'.