Neste challenges unsubstantiated report on fraudulent UCO volumes
September 14, 2023
BY Neste Corp.
The recently published USDA Biofuels Annual Report (1 September, 2023) suggests that Neste may have received fraudulent used cooking oil (UCO) volumes at its renewable products refinery in Singapore, specifically virgin palm oil from Indonesia exported fraudulently as UCO via China.
Neste takes suspected fraud cases seriously and investigates them accordingly. In addition, the company continuously evaluates the quality and authenticity of the raw material volumes it receives, conducting thorough laboratory analyses of the samples of UCO volumes it receives to its terminals from China. Neste’s recent analyses of UCO received from China do not support the USDA’s assertions, hence the company believes that the reference to Neste in the USDA report is either a mistake or based on a misunderstanding.
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Neste will contact the appropriate authorities at the USDA to discuss and learn more about the assertions in the report.
Robust methods to prevent fraud in its renewable raw material supply chains
Neste sources traceable UCO and other renewable raw materials globally from carefully selected suppliers. Neste evaluates its suppliers and accepts renewable raw materials only from those suppliers that are able to meet strict criteria for sustainability and end-market regulation. Neste ensures traceability of the sourced raw materials as is required by law, and uses audits, carried out by independent third-party experts and Neste itself, to monitor sustainability performance of suppliers. This also helps Neste reduce the risk of fraud within its supply chains.
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Neste does not import conventional biofuels (i.e. “biobased diesel” in the USDA report) nor renewable diesel (i.e. “hydrogenation derived renewable diesel” in the USDA report) from China or Indonesia to the European market or elsewhere. Instead, Neste produces its high-quality renewable products such as renewable diesel at its own refineries. Hence any suggestions that Neste would somehow be involved in the Chinese or Indonesian biofuels exports to Europe or elsewhere are incorrect.
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