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PFAD residue from palm oil refining

Palm fatty acid distillate or PFAD is one of the many waste and residue raw materials that we have in our portfolio. Although linked through supply chains, palm oil and PFAD are different renewable raw materials: palm oil is a crop-based vegetable oil whereas PFAD is a processing residue derived from the refining of food-grade palm oil for the food and chemical industry uses.

PFAD fully meets the EU RED definition of "processing residues":

…a substance that is not the end product(s) that a production process directly seeks to produce. It is not a primary aim of the production process and the process has not been deliberately modified to produce it.”

Some have argued that PFAD should not be considered a residue because it has market value and many uses. In circular economy, however, all residues and wastes should have an avenue to be utilized, and thus have value. 

Degraded fats

When harvesting oil palm and handling fresh fruit bunches, normal bruising occurs causing the fat in the fruit to start degrading. 

Readily available

Because the demand for palm oil by the food industry continues being high, there is plenty of this PFAD residue available for various uses.

PFAD use does not increase pressure to expand oil palm farming

Palm oil producers get a lower price for PFAD than for the edible palm oil (olein and stearin).

PFAD as renewable raw material offers climate benefits

Waste and residue raw materials like PFAD provide the biofuels industry, among others, with alternatives to raw materials that can also be used in the food industry.

Sustainability of PFAD

Neste buys PFAD only from those suppliers that are committed to sustainable working practices and meeting our strict sustainability criteria and those set by authorities in our markets. 

More about PFAD traceability

Neste Singapore refinery workers

PFAD dashboard

Comprehensive information about our PFAD supply chain can be found on Neste's traceability dashboard.

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Person works on a plantation

PFAD supplier sustainability workshops

Neste actively engages with its renewable raw material suppliers through workshops to collaboratively develop innovative solutions in the supply chain, continuously improve sustainability.

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