Neste Oil supports sustainable palm oil for next-generation biodiesel
Leading next-generation biodiesel producer Neste Oil has expressed its view on palm oil as a biofuel feedstock. The company's proprietary technology for producing NExBTL renewable diesel is based on hydroprocessing vegetable oils (earlier post). The process can potentially accomodate a wide range of raw material feedstocks but initially palm oil will be the most widely used type. Neste Oil is also investing in R&D to explore alternative feedstocks including waste wood and non-food plant oils (previous post).
The company wants to ensure that growth in palm based biofuel production is 'ethically sourced' from 'sustainable' palm oil feedstock, 'audited and certified'. These standards would be similar to those now in use in the commercial forestry sector, it says.
Developing countries think such criteria are important but cannot be used as new trade barriers or as a way to deny small palm oil farmers to make a profit. The sector is one of the few to allow extremely poor rural people to make a living with limited means. In Africa, the sector is dominated by small holders and in Asia around 50% of the plantations provide livelihoods to hundreds of thousands of small farmers. The emerging biofuels industry is set to bring them and new entrants unprecedented opportunnities for further poverty alleviation.
Palm oil is a crop that does not allow for an easy compromise between, on the one hand, the hard economic logic of the poor's attempts to climb out of poverty and to join 'modernity' as fast as possible, and, on the other hand, the more complex argumentation of the environmental economist and conservationist from the wealthy West who takes a more global, holistic and long term perspective on sustainable development. However, some scientists have suggested a bridge: conservationists should become palm oil farmers themselves, so they can understand the sector better and fund their conservation efforts with the profits from the crop (earlier post).
Some environmentalists have even gone against the grain and have argued that not investing in palm oil could be far more disastrous to the environment than investments in eco-friendly palm oil production efforts. But the reasoning is quite complex (more here).
In any case, poor countries will never give up on the vast potential for social and economic development brought by palm oil, especially now that palm based biofuels have become competitive with catastrophically high oil prices. For this reason, it is crucial for the West to help create strategies that can limit the environmental effects of the crop's cultivation, but in such a way that its many strong social and economic advantages are maintained.
Obviously, the West, which deforested its own lands rapidly since the Industrial Revolution, must carry the burden of the costs involved in guaranteering sustainable palm oil production. Not the developing countries. Neste Oil supports the application of criteria and says it is determined to set the highest standards for sustainability and meet stringent requirements for auditing and certification - however, it doesn't say whether it is prepared to pay the premium.
Neste Oil supports sustainable palm oil because of its many advantages. It is the most productive biofuel crop (for biodiesel, but also for ethanol which can be produced from abundant palm residues by new bioconversion technologies). Based on its participation in various greenhouse gas calculation working groups - the RTFO process in the UK and the Dutch Cramer Commission on criteria for sustainable biomass (earlier post) - Neste Oil says palm oil is estimated to have a high potential to save greenhouse gas emissions.
Finally, Neste Oil is the first oil company to join the Roundtable on Sustainable Palm Oil (RSPO):
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: biodiesel :: palm oil :: poverty alleviation :: Africa :: Asia ::
The RSPO has over 270 members, representing all phases of production and key stakeholders from civil society – including many NGOs with critical interests in rainforest conservation and protecting the habitat of threatened species including orangutan populations.
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.
NGO members of the RSPO are: WWF (International Secretariat and Indonesian and Malaysian chapters,) Wetlands International, BOS International, PanEco, Global Environment Centre, Oxfam International, Both ENDS, Fauna Flora International, Pesticide Action Network (PAN) Asia-Pacific, Sawitwatch.
References:
Neste Oil: Neste Oil view on palm oil as biofuel feedstock - October 17, 2007.
Biopact: Environmentalist: palm oil not necessarily a failure as a biofuel, ban would be disastrous for the environment - April 10, 2007
Biopact: Towards a truce: environmentalists should use palm oil as a lever for conservation - September 03, 2007
Biopact: Dutch propose biofuels sustainability criteria: NGOs sceptical, developing world says 'green imperialism' - April 28, 2007
Biopact: And the world's most productive ethanol crop is... oil palm - June 21, 2006
Biopact: Finnish oil major is considering jatropha oil for next-generation biodiesel - April 19, 2007
The company wants to ensure that growth in palm based biofuel production is 'ethically sourced' from 'sustainable' palm oil feedstock, 'audited and certified'. These standards would be similar to those now in use in the commercial forestry sector, it says.
Developing countries think such criteria are important but cannot be used as new trade barriers or as a way to deny small palm oil farmers to make a profit. The sector is one of the few to allow extremely poor rural people to make a living with limited means. In Africa, the sector is dominated by small holders and in Asia around 50% of the plantations provide livelihoods to hundreds of thousands of small farmers. The emerging biofuels industry is set to bring them and new entrants unprecedented opportunnities for further poverty alleviation.
Palm oil is a crop that does not allow for an easy compromise between, on the one hand, the hard economic logic of the poor's attempts to climb out of poverty and to join 'modernity' as fast as possible, and, on the other hand, the more complex argumentation of the environmental economist and conservationist from the wealthy West who takes a more global, holistic and long term perspective on sustainable development. However, some scientists have suggested a bridge: conservationists should become palm oil farmers themselves, so they can understand the sector better and fund their conservation efforts with the profits from the crop (earlier post).
Some environmentalists have even gone against the grain and have argued that not investing in palm oil could be far more disastrous to the environment than investments in eco-friendly palm oil production efforts. But the reasoning is quite complex (more here).
In any case, poor countries will never give up on the vast potential for social and economic development brought by palm oil, especially now that palm based biofuels have become competitive with catastrophically high oil prices. For this reason, it is crucial for the West to help create strategies that can limit the environmental effects of the crop's cultivation, but in such a way that its many strong social and economic advantages are maintained.
Obviously, the West, which deforested its own lands rapidly since the Industrial Revolution, must carry the burden of the costs involved in guaranteering sustainable palm oil production. Not the developing countries. Neste Oil supports the application of criteria and says it is determined to set the highest standards for sustainability and meet stringent requirements for auditing and certification - however, it doesn't say whether it is prepared to pay the premium.
Neste Oil supports sustainable palm oil because of its many advantages. It is the most productive biofuel crop (for biodiesel, but also for ethanol which can be produced from abundant palm residues by new bioconversion technologies). Based on its participation in various greenhouse gas calculation working groups - the RTFO process in the UK and the Dutch Cramer Commission on criteria for sustainable biomass (earlier post) - Neste Oil says palm oil is estimated to have a high potential to save greenhouse gas emissions.
Finally, Neste Oil is the first oil company to join the Roundtable on Sustainable Palm Oil (RSPO):
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: biodiesel :: palm oil :: poverty alleviation :: Africa :: Asia ::
The RSPO has over 270 members, representing all phases of production and key stakeholders from civil society – including many NGOs with critical interests in rainforest conservation and protecting the habitat of threatened species including orangutan populations.
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.
NGO members of the RSPO are: WWF (International Secretariat and Indonesian and Malaysian chapters,) Wetlands International, BOS International, PanEco, Global Environment Centre, Oxfam International, Both ENDS, Fauna Flora International, Pesticide Action Network (PAN) Asia-Pacific, Sawitwatch.
References:
Neste Oil: Neste Oil view on palm oil as biofuel feedstock - October 17, 2007.
Biopact: Environmentalist: palm oil not necessarily a failure as a biofuel, ban would be disastrous for the environment - April 10, 2007
Biopact: Towards a truce: environmentalists should use palm oil as a lever for conservation - September 03, 2007
Biopact: Dutch propose biofuels sustainability criteria: NGOs sceptical, developing world says 'green imperialism' - April 28, 2007
Biopact: And the world's most productive ethanol crop is... oil palm - June 21, 2006
Biopact: Finnish oil major is considering jatropha oil for next-generation biodiesel - April 19, 2007
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