14/05/2009 (Biofuel Review) - The Neste refinery in Porvoo was the scene of a protest by environmental activists on Tuesday (12th May), calling for the company to stop using palm oil as a feedstock for its NExBTL-diesel. According to Greenpeace, Neste Oil is set to become the world's largest consumer of palm oil over the next three years, and this expansion will lead to massive deforestation.

Greenpeace is urging the Finnish government to use its influence to stop Neste Oil using palm oil, and not to subsidise palm oil for fuel in the future.

The company has publicly announced its plans to scale up its production and has recently invested in new NExBTL refineries in Finland, Singapore and the Netherlands, due online in 2009, 2010 and 2011 respectively. If these plans go ahead, says Greenpeace, the company will require at least 1.5 million metric tons of palm oil a year, making it the biggest single consumer of palm oil worldwide. Based on current yields, this increase in demand would require at least 325,000 hectares of oil palm plantations, equivalent to an area significantly larger than Luxembourg.

Neste Oil claims to source all of its palm oil from established plantations in Malaysia. However, according to Greenpeace, the company refused to provide any evidence of traceability in its entire supply chain from the plantation to the refinery. It is also, claims Greenpeace, failing to provide any indication of where it intends to source future palm oil supply.

The Swedish gas company OKQ8 has already refused to sell Neste Oil’s palm oil diesel and a recent trial planned for Stockholm’s ferry traffic was cancelled in December.