28.04.2023 (Argus Media) - Colombia, the world's fourth-largest palm oil producer, could increase output of the agricultural product by almost 40pc by 2028 to feed a growing sustainable aviation fuel (SAF) market, the head of the Colombian federation of palm oil growers (Fedepalma) said.

The country — Latin America's largest palm oil producer — is set to produce around 1.8 mn t/yr of palm oil in 2023, but it could boost production to around 2.5 mn t/yr by 2028 if the SAF market proves to be economically profitable for palm oil producers, Nicolas Perez Marulanda told Argus on the sidelines of IV International Conference on Biofuels in Cali, Colombia.

"What is exported today, which is 2pc of the total production, that bulk could be available for the new SAF market," Marulanda said. "But SAF needs to prove that it is more attractive [for palm oil] than exports. From what we have been hearing, the prices for the raw material for SAF are very interesting."

The ISCC, a global sustainability certification system, is developing a study financed by the World Bank to demonstrate Colombia's palm oil production is done sustainably, without deforestation.

The study, set to conclude in October, could pave the way for approval of palm oil's use for SAF under the International Civil Aviation Organization (ICAO).

Colombia's palm oil is produced in a sustainable manner generating more than 200,000 formal jobs. It does not rely on a migrant labor force, employ children or contribute to deforestation, he added.

Colombia has 600,000 hectares dedicated to palm oil but planting higher yielding crops, improving fertilization and implementing better agricultural practices could increase production in the same footprint. Colombia could boost productivity from 3.5t/per hectare today to 5t/hectares in five years.

Colombia's state-controlled oil company Ecopetrol and biodiesel refiner Bio D have said they would likely use palm oil as a feedstock to produce SAF.

In Colombia, about 400,000t/yr of palm oil output already goes to produce biodiesel, which has a mandated 10pc blend into conventional diesel.

Some 430,000t/yr of palm oil is exported and the balance covers domestic consumption.

By Diana Delgado

https://www.argusmedia.com/en/news/2444173-colombias-palm-oil-producers-eye-saf-market