Waste and residues as raw materials

In recent years, Neste has become the world’s largest biofuels player with regards to circular economy. Approximately 80% of the production of our renewable products is based on waste and residues.

We are continuously on a search for new, even lower quality wastes and residues to be utilized in the production of our premium-quality products. With the company’s proprietary NEXBTL technology, renewable products can be refined flexibly from a wide variety of low-quality raw materials while the end-products retain their high quality. Here are examples of wastes and residues that we have in our raw material portfolio:

Animal fat from food industry waste

For years, we have produced our renewable products from the food industry’s meat processing waste that is unsuitable for human consumption. Meat processing waste is further processed into meat and bone meal and rendered animal fat at rendering plants.

Rendering is a heating process which also eliminates pathogens in order to protect the health of humans and animals. In addition to producing biofuels, animal fat may partly be used as animal feed, as well as in the chemical and energy industries. Neste sources animal fat globally.

Fish fat from fish processing waste

Neste started using fish fat derived from fish processing waste to produce renewable diesel already in 2012. Fish fat is separated from the gutting waste of freshwater fish pangasius after the parts suitable for human consumption have been removed for food industry use at fish processing plants. Pangasius is grown particularly in Southeast Asia. Fish fat can also be used as feed.

Residues from vegetable oil processing

Many vegetable oil processing residues can be used as raw materials to produce Neste's renewable products. For example, palm fatty acid distillate (PFAD) needs to be removed during the palm oil refining process to improve taste, odor, and color of the oil before it meets the food industry’s quality standards and can be used to to produce cookies, cereals, and candy, or used as spreads and cooking fat. 

When oil palm fruit are handled, normal bruising occurs causing the fat in the fruit to start degrading. The longer it takes for the fruit to be transported, processed, and refined into palm oil, the larger part of the fats degrade.

The deliveries of oil palm bunches from the plantations to the mills are, therefore, usually made as quickly as possible in order to minimize the rancidification of fats to free fatty acids to rancid fats and limit the amount of fatty acids, i.e. PFAD, that needs to be distilled.

Producers of palm oil aim at as small yields of processing residue PFAD as possible because they can get a better price for the crude palm oil than from selling PFAD.

The annual PFAD volumes available globally total approx. 2.5 to 3 Mt, as refining of palm oil generally yields approx. 3.5–5% of PFAD as a processing residue (source and all rights: Informa Economics, 2016). This is less than the amount of sawdust a sawmill yields when making timber products. 

Besides being used as a raw material for renewable fuels, PFAD is also used to produce candles, soaps, other oleochemical products, as well as animal feed. 

Used cooking oil

Used cooking fats and oils are primarily wastes from the food industry and restaurants. Neste sources used cooking oils (UCO) globally.

Technical corn oil

Technical corn oil (TCO) is a processing residue generated in the production of ethanol from corn, during which also animal feed is produced. The yields of TCO are small and this residue is not suitable for human consumption.

TCO is cheaper than corn oil (or maze oil) produced for human consumption. TCO is used primarily as raw material in the oleochemical industry, as an animal feed additive, and as raw material in renewable diesel production. The needs for ethanol as a biocomponent in gasoline blends has simultaneously increased the availability of TCO as raw material suitable for renewable diesel production. We source TCO from the United States.

Tall oil pitch

In addition to the wastes and residues listed above, we have utilized inedible tall oil pitch, a residue from tall oil refining process, to produce transport fuels at our refinery in Naantali, Finland.

Sustainability aspects related to the use of wastes and residues

Producing biofuels from wastes and residues is resource efficient and an example of smart utilization of the globe’s resources. Utilizing wastes and residues as raw material reduces the need to increase use of land to produce or to cultivate raw materials. This is how less can be more.

Utilization of waste and residues to replace crude in transport fuel production provides significant climate benefits. The greenhouse gas emissions over the entire life cycle of Neste MY Renewable Diesel made from wastes and residues are on the average 90% smaller than those of fossil diesel. This significantly exceeds the current EU-level requirement for a 50% reduction.

All the wastes and residues we use meet the criteria set by the European (EU RED) and North American (RFS) legislation. Waste and residue raw materials are, for example, traceable to their origins (at the vegetable oil or meat processing plants), as required by law.