In a statement released this week the Finnish oil major Neste said that the only way to use palm oil for biofuel production was by setting the highest standards for sustainability and by meeting stringent requirements for auditing and certification. The company was clear that it was committed to backing sensible use of palm oil, pointing out that it was the first oil company to join the Roundtable on Sustainable Palm Oil (RSPO) and is fully committed to sustainable sourcing of feedstocks for the production of the NExBTL renewable diesel.

The company’s proprietary technology for producing NExBTL renewable diesel can potentially use a wide range of raw material feedstocks. However, Neste is clear that in the near-term, vegetable oil sourced from palm oil is among the most widely and commercially available – although it is investing in R&D to explore alternative feedstocks including waste wood and non-food plant oils.

The statement continued; "Neste Oil believes that innovation and technology can help ensure that increased demand for vegetable oil does not require rain forest devastation. The current output per hectare can be doubled by improving yield through better farming techniques. Furthermore, Neste Oil is looking at ways in which disused land (idle land) can be used to produce vegetable oil. It is estimated that in Southeast Asia alone there is over 20 million hectares 5 of non-rain forest land suitable for sustainable palm oil production currently not in use.

"Neste Oil’s view is that renewable diesel is part of the solution to improving fuel efficiency and reducing the detrimental environmental effects of traffic. Better fuels allow more efficient engines and lower fuel consumption. Better quality fuels, such as NExBTL diesel, also permit the reduction of exhaust gases."