Oil major ENI discontinues palm oil use as biodiesel feedstock

ENI discontinues its sourcing of palm oil

In Octobre 2022 the Italian energy company announced the end of its sourcing of palm oil hitherto processed at its Italian biorefineries, and is replacing the vegetable oil with used cooking oil (UCO) and animal fats along with vegetable oils it imports from Kenya. While the oil company shifts its procurement of feedstock towards waste & residues, it has also announced the building of a new biorefinery in Livorno, where a plant will produce hydrogen from methane gas.

EU policy regarding imported feedstock amid deforestation fears has hardened

This is happening against the background of major changes in the EU renewable energy policy following the announced phasing out of palm oil after a recent change of heart by MEPs regarding South American soy oil. In July the EU parliament industry committee voted to curb soil oil used as feedstock in biodiesel production, as over 70% of soy oil currently used in biodiesel production is imported from South America. MEPs are concerned soy cultivation is a major cause of deforestation. The original objective was phasing out to start kicking in by 2030, but MEPs are now hoping to bring the date forward.

While some imported feedstocks dwindle, others surge to fill the gap

Rapeseed imports are reported to have increased by 40% year on year, as the EU campaign cannot possibly plug the supply gap in oilseeds (and grains) left by the Ukranian-Russian war while both palm oil and soy oil are being curbed under the pressure of public opinion. The origin of imports, although not reported in press reports, is believed to be from Canada. Canada's rapeseed (named canola in North America) is GM, much like soy imported from the Americas.

Keywords: biorefineries, palm oil, soy oil, vegetable oil, used cooking oil, UCO, animal fats, wastes & residues, hydrogen, feedstock, biodiesel production, ENI, rapeseed, canola, deforestation, oilseeds