studio Gear Up analysed POME-oil volumes, following a T&E report
Authors: Emma Beroske, Carlo Hamelinck
Transport & Environment (T&E) recently reported that around 2 million tonne of POME-based biofuels have been consumed in Europe and that this is more than what should be expected from POME-oil.
studio Gear Up’s analysis concluded that the POME-oil used in European biodiesel is likely around 2 million tonne in 2023, while the production of POME-oil ranges between 1.2 and 2 million tonnes, so the consumption is around the maximum of what is produced but we cannot confirm that the consumption is (already) larger than the production.
studio Gear Up agrees that future volumes of POME-oil based biofuels must be followed closely to ensure that their deployment is within the range of POME-oil production potential.
We agree with T&E that a better system must be developed to increase the information position of stakeholders along renewable fuels supply chains especially on the upstream side at the palm oil mill and sector parties need to have an overview whether deployment volumes are in line with production potential (at the downstream side).
T&E analysis pointing to larger amount of EU POME-based biofuels than potential residue-oil production
European NGO Transport & Environment (T&E) published a report on the use of residues from the palm oil industry that are used to produce biofuels for the European market.[1] Their analysis points that the amount of biofuel produced from the oil fraction in Palm Oil Mill Effluent (POME), a by-product of the processing of palm oil is outside the range of what can possibly be made available based on the global production of palm in 2023. According to this report, the amount of POME used in EU and UK for the production of Hydrotreated Vegetable Oil (HVO) as drop-in fuels has reached about 2 million tonnes in 2023. T&E uses preliminary data to calculate future volumes suggesting a large increase in 2024.
sGU numerical analysis concludes that current POME-based biofuels in EU fall within current production potential
We calculate that the current production of POME-oil falls between 1.2 million tonnes and 2 million tonnes. POME-oil is a residue resulting from the extraction of crude palm oil (CPO) and comprises largely of wastewater[2] (typically 95% [3]). POME is referred to as a waste product that can be harmful when discarded into the environment without prior treatment process.[4] Typically, POME contains 0.6% to 0.7 % of POME-oil.[5]
The amount of POME from CPO production is more difficult to estimate as it varies largely depending in the quality of raw material, time of operation treatment and season.[2] And it varies from 2.5 to 3.5 time the volume of CPO.[6] Therefore, we estimate the POME production to range between 200 and 280 million tonnes, hence the POME-oil production between 1.2 and 2 million tonne.[7]
Thereafter, using the same method as T&E we evaluated the probable use of POME in major European Member States [8] and in the UK [9]. Based on our analysis, we can confirm the T&E estimates that about 2 million tonne of POME-oil was likely used in EU biofuels in 2023 (see figure). EU consumption of POME-based biofuels is close to global POME-oil production in 2023, but we cannot confirm whether it is already surpassing production.
Figure 1: Development of POME-based biofuels deployment in the EU and UK from 2015 to 2023 based on available data and calculated high and low range of POME-oil production potential.
Reflections and recommendations
studio Gear Up agrees that the increasing use of POME-oil residues for EU biofuels should be closely monitored. Based on the recommendations of T&E, we give the following reflections and propose additional recommendations to strengthen the information position of renewable fuel supply chains.
- T&E recommends prioritising the production of biogas from POME in producing countries for local energy generation. If the POME-oil is not exported this does not guarantee that biogas production would take place, and the European Commission is not in the position to stimulate this.
- We agree with T&E that POME-oil should not be double counted, yet this does not inhibit the collection of POME-oil which would remain sufficiently attractive also without double counting. Removing POME-oil from the RED IXA feedstock list is another recommendation by T&E. According to the directive however, listed feedstocks cannot be removed. Instead, Member States may consider removing double incentives in the market for POME-oil.
- T&E recommends a review of the certification system. We believe we need to be practical and effective and stimulate thorough auditing and strengthen the transparency with distributed ledger technology to guarantee tamper proof evidence and possibly inclusion of third party verification.The Union Database will improve the monitoring of global availability in comparison with use.
- A better understanding of historical fraction of POME-oil production is recommended to monitor volumes and detect anomalies more quickly. Historically reported POME-oil production allows to spot whether unusual increases have taken place in recent years. This should be complemented on top of more regular auditing at palm oil mills and at the level of the Union Database with a dedicated investigation unit at the European Commission and more regular auditing at palm oil mills.
In reflection, European regulation stimulating the production of residues-based biofuels inherently makes the use of residues more economically attractive. At the same time, promoting the use of residue for biofuels goes against another goal, the one of minimising residues and more efficient processes. The optimisation of the flow of product and residues will always be subject to economic considerations to obtain the best total value.
References
[1] Transport & Environment 2025. Palm oil in disguise? How recent import trends of palm residues raise concerns over a key feedstock for biofuels.
[2] Iman et al 2025. Valuable resources recovery from palm oil mill effluent (POME): a short review on sustainable wealth reclamation. Waste Management Bulletin.
[3] Ng et al 2023. Mathematical optimisation for sustainable bio-methane (Bio-CH4) production from palm oil mill effluent (POME). Energy 265 126211.
[4] Akhbari et al 2020. A study of palm oil mill processing and environmental assessment of palm oil mill effluent treatment. Environmental Engineering Research 25(2) 212-221
[5] Sharifudin et al 2015. Presence of residual oil in relation to solid particle distribution in Palm Oil Mill Effluent. BioRes 10(4) 7591-7603.
[6] Dominic & Baidurah 2022. Recent Developments in Biological Processing Technology for Palm Oil Mill Effluent Treatment—A Review. Biology 11(4) 525.
[7] Yeoh & Goh 2022. Hydrotreated vegetable oil production from palm oil mill effluents: Status, opportunities and challenges. Biofuels, Bioproducts and Biorefining 16(5) 1153-1158.
[8] EU SHARES Database for category name for Annex IX A (g).
[9] UK Renewable Transport Fuel Obligation (RTFO) statistic.
