Canonical definitions for terms used in regulated biofuel and SAF feedstock supply chains.
All definitions are interpretive and analytical — not regulatory authority.
UCO (Used Cooking Oil) Waste cooking oil collected from domestic, commercial or food industry sources. Classified as a waste material under ISCC EU and listed in EU RED III Annex IX Part A, making it eligible as a second-generation biofuel and SAF feedstock. UCO qualifies for double counting toward renewable energy targets. Eligibility depends on a complete chain of custody from collection point to processor.
See also: What is Used Cooking Oil · UCO Chain of Custody PFAD (Palm Fatty Acid Distillate) A by-product of crude palm oil (CPO) refining, produced during the deacidification process. Contains very high levels of free fatty acids (typically >70%). Classified as an industrial residue under EU RED III Annex IX Part B. PFAD's classification as residue (not waste) has been subject to ongoing regulatory discussion at EU level — operators should verify the current status with ISCC or the relevant regulatory body.
See also: Waste Lipid Categories POME (Palm Oil Mill Effluent) Liquid waste from palm oil mill processing. Contains high organic content and can be converted to biogas via anaerobic digestion. Recovered POME oil — the lipid fraction extracted from the effluent — qualifies as a waste feedstock under Annex IX Part A for biofuel production. POME biogas and POME oil recovery are distinct processes.
See also: Waste Lipid Categories CPO (Crude Palm Oil) Crude palm oil extracted directly from oil palm fresh fruit bunches (FFB). A primary agricultural commodity — not classified as waste or residue feedstock under ISCC EU or EU RED III. CPO does not qualify for Annex IX advanced biofuel status and is subject to ILUC risk assessment.
See also: CPO vs PFAD vs UCO Comparison ISCC (International Sustainability and Carbon Certification) International certification system for biomass and biofuel supply chains. ISCC EU is the standard recognised under the EU Renewable Energy Directive for market access. ISCC EU 203 specifies requirements for UCO, including audit cycles, origin records, and chain of custody. ISCC PLUS covers voluntary sustainability certification outside EU regulatory requirements.
See also: ISCC Requirements for UCO · ISCC for Palm Feedstock ISCC CoC (Chain of Custody) Continuous documentation verifying the origin and movement of feedstock from source to end user. Under ISCC, three CoC models apply: Identity Preserved (IP) keeps material physically separate and traceable to source; Segregation (SG) keeps certified material separate but pools sources; Mass Balance (MB) allows physical mixing with accounting-based tracking.
See also: UCO Chain of Custody Explained Identity Preserved (IP) The strictest ISCC chain of custody model. Certified material is kept physically separate from non-certified material at every stage — each batch can be traced to specific source points. IP is operationally demanding for UCO supply chains due to the many small collection points involved, but may be required for premium SAF contracts with specific provenance requirements.
See also: UCO Chain of Custody Explained
Segregation (SG) An ISCC chain of custody model that keeps certified material separate from non-certified material, but allows pooling from multiple certified sources. Less operationally intensive than Identity Preserved but still requires physical separation infrastructure — dedicated storage, transport, and processing lines. Mass Balance (MB) The most commonly used chain of custody model in UCO supply chains. Allows physical mixing of certified and non-certified material, provided the accounting system ensures that the volume of certified output never exceeds the volume of certified input. Practical for UCO because it accommodates multi-source collection and shared storage infrastructure.
See also: UCO Chain of Custody Explained SAF (Sustainable Aviation Fuel) Aviation fuel produced from non-fossil sources meeting regulatory sustainability criteria. SAF can be produced via multiple technology pathways including HEFA, Alcohol-to-Jet (AtJ), and Fischer-Tropsch (FT-SPK). HEFA-UCO is currently the most commercially mature SAF pathway. EU ReFuelEU Aviation mandates escalating SAF blending percentages, creating structural demand for eligible lipid feedstocks.
See also: SAFIntel — demand signals
HEFA (Hydroprocessed Esters and Fatty Acids) The most commercially mature SAF production pathway, using lipid feedstocks (UCO, PFAD, animal fats) processed via hydroprocessing. HEFA-UCO is the dominant current production route for SAF. The process converts lipid feedstocks into drop-in aviation fuel compatible with existing engines and infrastructure. Feedstock Admissibility Whether a raw material qualifies for acceptance under a specific certification standard or regulation. Admissibility depends on three factors: (1) material classification — whether it is waste, residue, or primary, (2) geographic origin — whether the source country and facility meet regulatory requirements, and (3) completeness of chain of custody documentation.
See also: Feedstock Classification System Annex IX (EU RED III) The annex of the EU Renewable Energy Directive listing feedstocks eligible for advanced biofuel status. Part A lists waste feedstocks (including UCO and animal fats) — biofuel from Part A feedstocks counts double toward renewable energy targets. Part B lists residue feedstocks (including PFAD and agricultural residues) — counts once. Materials not listed in Annex IX may still be used for conventional biofuel but do not receive preferential counting.
See also: Feedstock Classification System
GHG Savings Reduction in greenhouse gas emissions calculated over the lifecycle of a biofuel compared to fossil fuel benchmarks. Under EU RED III, new biofuel installations must demonstrate at least 65% GHG savings. Waste and residue feedstocks typically achieve higher savings because emissions from the original production process are allocated to the primary product, not the waste stream. Aggregator A company or individual that collects UCO from multiple small sources (restaurants, hotels, food courts) before selling to processors or exporters. In Southeast Asian UCO supply chains, the aggregator is the first formal node where ISCC chain of custody documentation is established — and the most common point where documentation quality is variable.
See also: What is Used Cooking Oil
Lipid A chemical compound class encompassing oils, fats, and waxes. In the biofuel feedstock context, lipids refer to oils and fats that can be processed into biofuel via HEFA (hydroprocessing) or esterification pathways. UCO, PFAD, POME oil, animal fats, and CPO are all lipid feedstocks. Oleochemical Chemical products derived from vegetable oil or animal fat sources. The oleochemical industry uses CPO, palm kernel oil (PKO), and palm by-products as raw materials. Oleochemical demand competes with biofuel demand for the same lipid feedstock pool, influencing price dynamics.
See also: Palm Oil Feedstock Market ILUC (Indirect Land Use Change) The concept that dedicating agricultural land to energy crop production displaces food production, causing new land — potentially forests or peatlands — to be cleared elsewhere. The EU applies ILUC risk factors to primary feedstocks. Palm oil is classified as high-ILUC under the EU Delegated Regulation, creating additional emissions charges and phasedown caps. Waste and residue feedstocks are exempt from ILUC attribution.
See also: Primary vs Secondary Feedstock
B20 / B30 / B40 Malaysia's biodiesel blending mandates, specifying the percentage of biodiesel mixed with petroleum diesel. B20 = 20% biodiesel, B30 = 30%, B40 = 40% (current target). These mandates create domestic demand for palm-derived biodiesel feedstock and compete with export demand for the same feedstock pool. MPOB (Malaysian Palm Oil Board) Malaysian statutory body under the Ministry of Plantation Industries and Commodities. MPOB regulates the palm oil industry under Akta 582, requiring all processors, refiners, and exporters to hold MPOB licences. MPOB's data portal (mpob.gov.my) is the primary source for Malaysian palm oil production statistics and pricing.
See also: Palm Oil Feedstock Market EU RED III (Renewable Energy Directive III) The current EU directive setting binding renewable energy targets for member states, including sub-targets for advanced biofuels and SAF. RED III defines the Annex IX feedstock eligibility framework, GHG savings requirements (minimum 65% for new installations), and the regulatory basis for ISCC certification as a market access mechanism.
See also: Feedstock Classification System CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) ICAO's international scheme to reduce aviation carbon emissions. SAF recognised under CORSIA must meet feedstock eligibility and GHG criteria that are distinct from (but overlap with) EU RED III requirements. CORSIA-eligible SAF pathways include HEFA from waste and residue lipid feedstocks.
See also: SAFIntel — demand signals
BEPI (Biofuel and Energy Production Index) A Malaysian reference index related to the biofuel and energy production sector. Relevant for domestic biodiesel pricing context. Consult KPK/MPOB for current data. Traceability The ability to track and document the journey of a feedstock from its point of origin (collection point) to the final end user. Traceability is a core requirement of ISCC and most biofuel sustainability standards. UCO has the highest traceability complexity among common waste lipid feedstocks due to its many small, dispersed collection sources.
See also: UCO Chain of Custody
JKPBA (Jawatankuasa Kawalan Petroleum dan Bahan Api) Malaysian regulatory body for petroleum and fuel control. Relevant for licensing UCO aggregators and biofuel processors operating within Malaysia's domestic fuel framework.
DOE eSWIS (Department of Environment — Electronic Scheduled Waste Information System) Malaysia's DOE electronic system for tracking scheduled waste. UCO may be subject to DOE reporting requirements depending on classification and quantity in certain regulatory contexts.
Definitions are for analytical and educational purposes only and do not constitute regulatory authority or compliance advice.
For certification requirements, consult a recognised certification body (ISCC, RSPO) or a qualified adviser.
Where regulatory interpretation varies, this is noted explicitly in the relevant definition.