Used Cooking Oil (UCO)

ISCC-EU certified UCO bought on FFA, MIU, chlorides and verifiable chain of custody

Used cooking oil (UCO / Yellow Grease, HS 1518.00) is the cornerstone secondary lipid feedstock for the global decarbonization of road haulage and commercial aviation. Listed under Annex IX Part B of the EU Renewable Energy Directive (RED II / RED III), fuels synthesized from UCO deliver life-cycle greenhouse gas (GHG) savings exceeding 80%–88% against the fossil fuel comparator (94 g CO₂e/MJ). Under EU ReFuelEU Aviation Regulation (EU) 2023/2405, UCO-derived HEFA-SPK is uncapped in aviation supply, while under the US Inflation Reduction Act (IRA Section 45Z), its low carbon intensity (CI = 15–22) captures premium clean fuel production tax credits ($1.10–$1.25/gallon).

Commercial valuation splits on fatty acid profile and catalytic tolerance: 1. Palm-Based UCO (Southeast Asia & Southern China): Characterized by an Iodine Value (IV) of 50–65 g I₂/100g, dominant in saturated palmitic acid (C16:0, 38–44%) and oleic acid (C18:1). It has a high solidification titer (24°C–32°C), requiring lower hydrogen consumption during primary hydrodeoxygenation (HDO) but demanding intensive catalytic isomerization (dewaxing) to achieve the −47 °C freeze point mandatory for aviation Jet A-1. 2. Soft-Oil UCO (Europe, North America & Northern China): Derived from soybean, sunflower, and canola frying, featuring an IV of 75–95 g I₂/100g and rich in polyunsaturated linoleic acid (C18:2). Soft-oil UCO consumes 20%–30% more hydrogen in saturation reactors but yields superior cold-flow properties for winter-grade EN 15940 HVO.

Fixed-bed hydroprocessing units enforce strict catalyst ceilings: Chlorides must be held ≤ 10 ppm (max 15 ppm) to prevent the formation of volatile ammonium chloride (NH₄Cl) salts that deposit in cold high-pressure separators (CHPS) and induce catastrophic Chloride Stress Corrosion Cracking (Cl-SCC); Polyethylene (plastics contamination from food packaging) must not exceed 50 ppm (with premium refiners demanding ≤ 10 ppm) to prevent pyrolytic fouling and reactor bed pressure spikes (delta-P); Phosphorus is capped at ≤ 15 ppm to prevent irreversible poisoning of active alumina sites; and Free Fatty Acids (FFA) are contracted on a 5.0% basis (with pro-rata price discounts up to 8.0% and rejection above 10.0% to reflect hydrogen consumption and carbon yield loss).

Because virgin palm oil historically trades at a discount to UCO, fraud prevention is the core trading gate. CBIL enforces multi-tier verification: valid ISCC-EU certificates for every collector, aggregator, and logistics provider registered on the public scheme database; mandatory consignment onboarding in the EU Union Database for Biofuels (UDB); and laboratory screening of Carbon-13 isotope ratios (δ13C) and phytosterol markers to verify thermal degradation and eliminate virgin CPO adulteration. UCO moves in 20–22 MT flexitanks in 20ft containers and in heated parcel tankers (5,000–15,000 MT worked via LaycanDesk) on FOB, CFR, and CIF terms.

Excluded origins are not offered, including product re-exported, blended or re-processed through a third country. Every lot moves with a certificate of origin naming the producing plant, mine or grower country, and nothing is quoted before the seller and loading point are known.