Biodiesel (FAME): Production route
Why waste-oil plants need extra steps but earn more
What this tab covers How it is made: the main production routes or, for product families, the main product types and technologies, compared on share of supply, inputs per tonne, plant scale, yield, co-products and unit cost.All FAME is made by transesterification; the routes differ by feedstock and pre-treatment. Virgin palm, soy and rapeseed oils use simple base-catalysed plants beside crushers and refineries. Waste and residue oils (used cooking oil, tallow, palm oil mill effluent oil, fatty acid distillates) need acid pre-treatment and often distillation, but earn more credits in the EU and California. Cold-weather performance depends on the fatty acid profile, so rapeseed methyl ester dominates northern Europe and palm methyl ester the tropics.
Routes compared
| Route | Share of supply | Inputs per tonne | Typical scale | Yield | Co-products | Unit cost |
|---|---|---|---|---|---|---|
| Virgin vegetable oil FAME (palm, soy, rapeseed) | about 75-80% of world FAME (indicative; EU FAME was 48% crop-based in 2025, Indonesia and Brazil almost all crop) | about 1.0 t oil, 0.1 t methanol, 0.01 t catalyst per t FAME (indicative) | 100-500 kt a year, often integrated with crushers (Wilmar, ADM, Be8) | about 98% on oil (indicative) | crude glycerine about 0.1 t per t | oil is 80-85% of cost; palm oil was about $1,130/t in May 2026 (IMF via IMARC) |
| Waste and residue oil FAME (UCOME, tallow ME) | about 20-25% of world FAME (indicative; 52% of EU FAME was Annex IX feedstock in 2025, EBB) | about 1.05-1.1 t waste oil and 0.1 t methanol per t (indicative) | 20-200 kt a year | about 90-95% (indicative) | glycerine, distillation bottoms | waste oils trade at a smaller discount to virgin oil as credit demand rises (indicative) |
| Fatty acid distillate esterification (PFAD, acid oils) | small (indicative) | about 1 t fatty acids and 0.12 t methanol per t (indicative) | integrated with palm refineries | high | water instead of glycerine | PFAD trades below CPO (indicative) |
| Enzymatic and supercritical processes | under 1% (indicative) | similar to conventional | small | high | cleaner glycerine | higher (indicative) |
How each route works
Virgin vegetable oil FAME (palm, soy, rapeseed)Refined oil reacts with methanol over sodium methoxide at about 60°C in continuous stirred reactors; glycerine settles out and the ester is washed and dried.
cheap, mature; food-versus-fuel and land-use change risks
IMARC Q2 2026; EBB 2026; indicative Waste and residue oil FAME (UCOME, tallow ME)High free fatty acid oils are first esterified with acid catalyst, then transesterified; the product is usually distilled to remove impurities.
80-88% GHG savings; supply limited and prone to fraud
European Biodiesel Board Statistical Report 2025-2026 (Jun 2026) Fatty acid distillate esterification (PFAD, acid oils)Free fatty acids from refining react directly with methanol over acid catalysts or resins.
uses a refining residue; status under EU rules disputed
indicative Enzymatic and supercritical processesLipase enzymes or supercritical methanol handle mixed waste oils without soap formation.
flexible on feedstock; enzyme cost
indicative Unit economics are indicative ranges from the sources named; costs move with feedstock and energy prices, plant size and region.