Ecofys study on Crude Tall Oil markets and availability: sufficient supply for advanced biofuels, biomaterials and energy usage
UPM Biofuels commissioned a study from leading international energy and climate consultancy Ecofys - A Navigant Company, entitled "Crude tall oil low ILUC risk assessment: comparing global supply and demand". The study looked into crude tall oil (CTO) availability, current usage, whether the feedstock creates an additional demand for land, and whether the use of CTO in advanced biofuels can cause distortive effects in the markets. The recently conducted Ecofys study concludes that "the CTO market is not overly tight and potential surplus of about 850,000 tonnes of CTO is still available that could be tapped into". The total potential CTO supply is around 2.6 million tonnes. Current actual CTO demand is approximately 1.75 million tonnes, of which about 1.4 million tonnes is used by distillers and roughly 230,000 tonnes for biofuels. Ecofys also concludes that "CTO use for biofuels did not cause displacement effects elsewhere, and hence CTO, a non-land using process residue, is a low ILUC (Indirect Land Use Change) risk material." UPM considered it necessary to investigate the impact of UPM Biofuels' market entry, and to verify whether UPM BioVerno production may have impacted negatively on the CTO market. The study brings necessary information into the debate concerning raw material availability for various end-uses such as advanced biofuels and biomaterials. Click Read More below for additional detail.