Proportion of crude palm oil reduced from 2010
Thanks to the continuous expansion of the company's renewable raw material base, Neste Oil reduced the proportion of crude palm oil that it used to refine renewable fuel by 28%-points since 2010. The proportion of crude palm oil represented 54% of all the renewable raw materials the company used in 2011. When measured in tons, however, the volume of crude palm oil used in refining increased by 29% as the total raw material volume the company used for refining increased from 2010.
World production of palm oil (including stearin by-product and palm fatty acid distillate) rose to 50 million tons in 2011 (46 million tons). Neste Oil's use accounted for a fraction of this, 1.4% (1%). In 2011, 77% (80%) of the world’s palm oil was used by food manufacturers, 10% (8%) by the biofuel industry, 8% (7%) by the chemical industry, and the remainder in areas such as energy generation (Source: Oil World, January 2012).
The available volumes of certified sustainable palm oil are increasing rapidly at the moment. The volumes of other certified bio-based raw materials are expected to continue increasing slower also in 2012.
Palm oil sustainability certificates (like RSPO) are granted on a plant-by-plant basis, not to palm oil companies as a whole, which may operate a number of oil pressing plants.
To qualify for certification, a pressing plant must be able to show that its palm oil, which can be produced from inputs sourced from a number of different plantations, has been produced in accordance with the sustainability criteria specified in the relevant certification system.
Neste Oil explored the opportunities for collaboration with oil palm smallholders in 2011.
A large number of the palm oil mills supplying to Neste Oil have either a methane capturing system in place or a system to prevent its formation. Reducing methane emissions at the palm oil mills helps to further improve the greenhouse gas balance of fuels produced from palm oil.