Markets for palm oil fuel

Lufthansa flying with Neste Oil, Finnair rejecting palm oil

Page - February 23, 2011
Neste Oil is actively looking for customers for its palm oil diesel. In Finland, palm oil diesel is openly sold in Neste´s own fuel stations under misleading name "Green diesel". Some large customers have rejected public projects with palm oil diesel, while some seem to be interested in fueling rainforest destruction.



Lufthansa - flying with rainforest destruction

German Lufthansa introduced their first regular passenger flights powered by biofuels from Neste Oil in 2011. By flying with Neste Oil´s fuel containing palm oil, Lufthansa contributed to accelerating climate change, destruction of rainforests and generating human rights violations. Unless Neste Oil can guarantee that the fuel it is selling does not include raw materials that compete with food production and cause deforestation, customers should refrain from buying from Neste Oil.

Customers rejecting palm oil diesel

Swedish fuel retailer OKQ8 had already announced plans to start selling NExBTL in its fuel stations under the name ECO20Diesel; however the deal was canceled in autumn 2007 after public discussion in Sweden. OKQ8 decided to look for other raw materials than palm oil. In 2008, Neste Oil tried to introduce NExBTL for a test trial in public transport in Swedish capital of Stockholm. Local authorities operating diesel-powered boats in the archipelago of Stockholm canceled the planned project with Neste Oil because of environmental impacts of palm oil.

In 2009 and 2010, city councils of Helsinki and Espoo in Finnish capital region decided that the cities will prefer second generation biofuels over palm-oil based fuel in public procurement.

In January 2011 Finnish airline company Finnair announced it will postpone its planned aviation biofuel testing project, because Neste Oil could not supply fuel which would have been sustainable produced and reasonably priced. According to Finnair, the company rejects palm oil because it does not want to take part in projects that jeopardize food production and have negative social and environmental impacts.