Market

Indonesia is the world’s largest palm oil producer. Therefore, all bio-based diesel producers, including fatty acid methyl ester (FAME) and renewable diesel or hydrogenated vegetable oil (HVO) producers, use palm oil or its derivatives as feedstock.

Typically, refined,bleached deodorized palm oil (RBDPO) is used. However, in times of high crude palm oil (CPO) prices, FAME producers also use waste products from the CPO refining process, including palm fatty acid distillate (PFAD), palm acid oil (PAO) and palm stearin. However, since they are waste products, CPO refiners typically try to reduce the volume of PFAD and PAO. Hence their availability is limit