Latest market news

States ask EU to look into palm oil waste biofuels

  • : Agriculture, Biofuels
  • 24/10/14

Delegations from Ireland, Belgium, Germany and the Netherlands filed an information note for the European Commission's transport, telecommunications and energy council meeting on 15 October, asking the commission to look into concerns about palm oil mill effluent (Pome) oil and other palm oil derivatives used as waste-based biofuel feedstocks in Europe.

The information note claims that supply and consumption of Pome oil-based biofuels, which could include biodiesel, hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), has increased since Pome oil was included in Annex IX Part A of the renewable energy directive (RED).

The four member states say the reported consumption of Pome oil-based biofuels in 2023 compared with estimated global production potential is "a cause for concern," implying that the EU consumed more Pome oil-based biofuels than could theoretically have been produced. The states are asking the commission to start an analysis based on their concerns, and "take appropriate measures" depending on the results.

The Annex IX of the RED lists advanced and waste-based feedstocks for biofuels production, which member states can count twice towards their renewable energy targets. Annex IX Part B feedstocks, which include used cooking oil, tallow and brown grease, have a "soft cap" of 1.7pc to be used towards RED targets, although some member states go above that limit. The member states suggested creating a limit on the amount of Pome oil-based biofuels that can count towards renewable energy directive targets.

The countries have also asked other member states to share data with the commission to help the analysis effort, and to develop fraud-prevention measures. In May, France, Germany, and the Netherlands asked the commission to intensify its investigation into alleged biofuel sustainability fraud. The commission responded then by saying it would be launching a working group with member states on sustainability and fraud in the lead-up to states transposing the recently recast RED III.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more