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Asia Biodiesel Palm Oil

Neste announces 2020 target for PFAD traceability

Finland-based oil and renewable fuels refiner Neste announced today 100pc traceability targets for its Palm Fatty Acid Distillate (PFAD) supply by 2020.

The company’s supply of Crude Palm Oil (CPO), which is sourced from Malaysia and Indonesia, has been fully traceable to the plantation level since 2007, and 100pc certified since 2013.

Neste’s goal of providing 100pc transparency and traceability to its PFAD supply, which they source globally, poses a greater challenge, however, as the palm oil production process yields only 4-5pc of PFAD as a processing residue, requiring a greater number of sources needed to gather larger volumes of the biodiesel feedstock.

Further challenging Neste’s objective is the differing market dynamics between the food, chemical, and biofuel industries, which face varying legal obligations regarding the precise origination of raw materials.

“In order to trace back PFAD, we need to develop full traceability for the palm oil refined for food industry uses. The PFAD in one cargo ship may have been collected from 100 to 300 mills, handling fruit from 600 to 1,000 oil palm plantations,” Neste Sustainability Director Johan Lunabba said

The company representative added that Neste is inviting ambitious and forward-looking food industry actors to join forces with the company, leading to a positive impact on the overall sustainability of the palm oil sector.

PFAD represents one of 10 different renewable raw materials that Neste refines for renewable fuel production. The company says waste and residues currently account for nearly 80pc of the company’s renewable raw material usage.

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