# Biodiesel (FAME): Production route

Why waste-oil plants need extra steps but earn more

Source page: https://www.materialinsights.org/energy/biodiesel/routes/

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 processes**

Lipase 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.

## Other sections

- [Summary](https://www.materialinsights.org/energy/biodiesel/index.md)
- [Energy overview](https://www.materialinsights.org/energy/biodiesel/energy/index.md)
- [Correlation](https://www.materialinsights.org/energy/biodiesel/correlation/index.md)
- [Efficiency](https://www.materialinsights.org/energy/biodiesel/efficiency/index.md)
- [Techniques](https://www.materialinsights.org/energy/biodiesel/techniques/index.md)
- [Resources and labour](https://www.materialinsights.org/energy/biodiesel/resources/index.md)
- [Impact on the biosphere](https://www.materialinsights.org/energy/biodiesel/biosphere/index.md)
- [Overview](https://www.materialinsights.org/energy/biodiesel/overview/index.md)
- [Production](https://www.materialinsights.org/energy/biodiesel/production/index.md)
- [Feedstocks](https://www.materialinsights.org/energy/biodiesel/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/energy/biodiesel/cycles/index.md)
- [Trading](https://www.materialinsights.org/energy/biodiesel/trading/index.md)
- [Movement](https://www.materialinsights.org/energy/biodiesel/movement/index.md)
- [Regulation](https://www.materialinsights.org/energy/biodiesel/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/energy/biodiesel/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/energy/biodiesel/emissions/index.md)
- [Relationships](https://www.materialinsights.org/energy/biodiesel/links/index.md)