Finnish renewable fuel producer Neste has disputed claims made by the United States Department of Agriculture (USDA). The USDA stated in its latest Annual Biofuels Report that the company had received fraudulent volumes of used cooking oil (UCO).
The claims made by the USDA in its Annual Biofuels Report were based on a misunderstanding, Neste said on September 8.
On September 1, the USDA published a report. In it, it is suggested that Neste may have received fraudulent volumes of used cooking oil (UCO). This occurred at its renewable products refinery in Singapore. More precisely, virgin palm oil from Indonesia was fraudulently exported as UCO via China.
In response, Neste said it took cases of suspected fraud seriously and investigated them accordingly. Additionally, the company said it continuously evaluated the quality and authenticity of the raw material volumes it received by performing full laboratory analysis of UCO bulk samples received at its China terminals.
Neste's recent analysis of UCO received from China did not corroborate the USDA's claims, leading the company to believe that the reference to Neste in the USDA report was an error or based on a misunderstanding.
Neste’s traceability approach and guarantees
The company, furthermore, said it would contact the appropriate USDA authorities to discuss and learn more about the report's allegations.
Previously in its statement, Neste said it had robust methods to prevent fraud in its renewable raw materials supply chains.
Additionally, the company has sourced traceable UCO and other renewable raw materials globally from carefully selected suppliers, Neste said.
Therefore, Neste evaluated its suppliers and accepted renewable raw materials only from those suppliers capable of meeting strict sustainability criteria and end-market regulations, the company said.
“Neste guarantees the traceability of raw materials of origin, as required by law, and uses audits, carried out by independent experts and itself, to monitor the sustainability performance of suppliers. This also helps reduce the risk of fraud in its supply chains,” the company said in the statement.
“Neste does not import conventional biofuels (i.e. “bio-based diesel” in the USDA report) or renewable diesel (i.e. “hydrogenation-derived renewable diesel” in the USDA report) from China or Indonesia into the European market or elsewhere. Instead, the company produces its...renewable products, such as renewable diesel, in its own refineries. Therefore, any suggestion that it was in any way involved in biofuel exports from China or Indonesia to Europe or elsewhere is incorrect.”
Source: Oils & Fats International
