Important regulatory note: PFAD is not eligible for ReFuelEU Aviation SAF mandate compliance. Palm oil derivatives were explicitly excluded from the EU SAF mandate. PFAD can be used for HVO renewable diesel and FAME biodiesel under land transport mandates in some EU markets, but not for aviation SAF compliance. SUAT Fuels recommends UCO, animal fats or SBEO for SAF applications.
Overview
What Is PFAD (Palm Fatty Acid Distillate)?
Palm Fatty Acid Distillate (PFAD) is a by-product of the physical (steam) refining of crude palm oil (CPO). During deacidification by steam stripping, free fatty acids and other volatile compounds are volatilised and condensed separately, yielding PFAD — a dark brown, waxy material with high free fatty acid content (typically 75–95% FFA) and a fatty acid profile dominated by palmitic acid (C16:0, ~40–50%) and oleic acid (C18:1, ~35–40%).
Because palm oil is the most widely produced vegetable oil globally (~80 million tonnes/year), PFAD is available in very large quantities — approximately 4–5% of CPO yield, equating to 3–4 million tonnes/year of PFAD globally. The primary producers are Malaysia and Indonesia.
Key physical characteristic: PFAD is semi-solid to solid at temperatures below approximately 38–42°C. Heated storage (50–60°C) and heated transport equipment are mandatory. This creates logistics complexity compared to liquid feedstocks like UCO or rapeseed oil.
EU regulatory status: PFAD is classified as a palm oil refining residue, but unlike soap stock from non-palm origins, PFAD carries specific exclusions for aviation SAF applications under ReFuelEU. For land transport biodiesel and HVO, PFAD remains eligible in many EU markets with appropriate ISCC documentation.
Key Characteristics
PFAD Properties & Advantages
Up to 83% GHG Savings
RED III default value for PFAD-based biofuels. As a refining residue, very low upstream emissions attributed to PFAD under co-product allocation methodology.
Massive Global Supply
3–4 million tonnes/year global availability. Deep liquidity in Asia, Rotterdam and Port Klang. Competitive pricing due to large supply base.
High Palmitic Content
~40–50% palmitic acid (C16:0) gives PFAD-HVO excellent oxidative stability and cloud point properties for blend applications in warm climates.
Refining Residue Status
Classified as a palm oil refining by-product — lower cost than crude palm oil and eligible for residue-based GHG accounting under various sustainability frameworks.
Technical Data
Quality Specifications
Typical quality parameters for PFAD as supplied by SUAT Fuels. Batch-specific CoA with ISCC sustainability certificate provided for all deliveries.
| Parameter | Typical Value | Limit | Test Method |
|---|---|---|---|
| Free Fatty Acids (FFA) | 75–90% | min 70% | AOCS Ca 5a-40 |
| Moisture & Impurities (MIU) | 1–3% | max 4% | AOCS Ca 2b-38 |
| Iodine Value | 38–52 g I₂/100g | — | AOCS Cd 1d-92 |
| Palmitic Acid (C16:0) | 40–48% | — | EN ISO 5508 |
| Oleic Acid (C18:1) | 33–40% | — | EN ISO 5508 |
| Melting Point (Titre) | 38–44°C | — | AOCS Cc 12-59 |
| Sulfur | <20 ppm | max 30 ppm | EN ISO 20846 |
| Phosphorus | <10 ppm | max 15 ppm | EN 14107 |
| Density at 60°C | 0.850–0.870 kg/L | — | EN ISO 3675 |
| Colour (Lovibond 5¼") | 6–10 Red | — | AOCS Cc 13b-45 |
Compliance
Regulatory Status & Certifications
EU Regulatory Position — Important Distinctions
- Listed as palm oil refining residue under EU RED III — eligible for double-counting for land transport biofuel mandates
- NOT eligible for ReFuelEU Aviation SAF mandate compliance — palm oil derivatives explicitly excluded from aviation SAF list
- ISCC EU chain-of-custody certification required and held by SUAT Fuels
- RSPO (Roundtable on Sustainable Palm Oil) certification available for additional sustainability assurance
- EUDR compliant sourcing — full farm-level geolocation traceability for all Malaysian and Indonesian PFAD
- NOT eligible for ReFuelEU Aviation regulation (Regulation 2023/2405) from 2025
End Uses
Applications
HVO Renewable Diesel
High palmitic content makes PFAD-HVO suitable for warm climate markets. Blended with UCO or soy HVO for better cold flow in temperate markets.
FAME Biodiesel (PFAME)
Transesterification after FFA pre-treatment. Used in B7/B10/B20 blends primarily in Asian markets. EN 14214 compliant when cold flow additives used.
Oleochemicals
Soap manufacturing, fatty acid derivatives, surfactants. Major non-fuel use competes with biofuel demand, supporting price floor.
Asian Biofuel Markets
Key feedstock for Indonesian and Malaysian biodiesel mandates (B35 in Indonesia). Large volumes consumed domestically near origin.
Supply Geography
Origins & Availability
Malaysia and Indonesia produce approximately 95% of global PFAD. Major loading ports: Port Klang and Pasir Gudang (Malaysia), Dumai and Belawan (Indonesia). Rotterdam-based traders also re-export Asian PFAD to European markets. SUAT Fuels sources exclusively ISCC EU and RSPO-certified PFAD with full EUDR documentation. EU-origin PFAD volumes are very limited as palm is not grown in Europe.