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Home » Australia, Business News/Analysis, European Union (EU), Feedstocks, Field/Orchard/Plantation Crops/Residues, Indonesia, Malaysia, Marketing/Markets and Sales, Opinions, Policy, Sustainability

Palm Oil to Be Phased out as Biodiesel Feedstock?

Submitted by on June 5, 2018 – 5:39 pmNo Comment

by Cheryl Kalisch Gordon (Rabobank/The Land)  A proposal to alter the EU’s overarching renewable energy policy has been announced, which would phase-out palm oil as a biodiesel feedstock by 2021, due to production sustainability concerns.

Malaysia and Indonesia, which account for 90 per cent of global palm oil supply and sell more than 55pc of their production to the EU (46pc of which is used in biodiesel), are enraged by the announcement with calls for WTO intervention and large community protests.

The proposed phase-out is despite the EU approved palm oil sustainability scheme (similar to Australia’s canola accreditation re-endorsed late last year). This scheme should, in theory, have satisfied the EU concerns regarding sustainability.

Soybean oil is another possible alternative to replace palm oil however its use in EU biodiesel is limited by its capacity to deliver the required oxidation stability especially in northern European winters.

The headline proposal was however accompanied by a provision to limit biofuels made from plant crops to 2017 consumption levels and not higher than seven per cent of all transport fuels.

The required ratification of proposals by member states means it could be several years before a ban comes into place. READ MORE

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