French Court Upholds Law Banning Palm Oil from List of Permitted Biofuels

France’s constitutional court last month upheld a law excluding palm oil from the country’s biofuel scheme, saying that the new law was in line with the public interest of environmental protection, “considering the strong growth of palm oil production and the major amount of land used for its production worldwide, and given the deforestation and drying out of peat bogs”.    

French oil and gas giant Total, however, has said the court decision has put at risk its recently launched La Mède renewable diesel refinery.  Total had appealed against the regulation, which takes effect from January 2020.  Tax exemptions for palm biofuels would also end on 1 January 2020 under the government’s 2019 budget.  Total CEO Patrick Pouyanne had warned in September that the decision could mean losses of up to €80M (US$88M) for its La Mède refinery, forcing it to rethink its plans. 

The company has invested €300M (US$332M) in converting its La Mède site from a crude oil refinery into a 500,000 tons/year renewable diesel or hydrotreated vegetable oil (HVO) plant, with the first batches of fuel coming on stream in July. Total had said the plant would be using 60-70% sustainable vegetable oils (rapeseed, sunflower and palm oils) and 30-40% animal fat, used cooking oil and residues from waste. It had pledged to use no more than 300,000 tons/year of palm oil (less than 50% of the total volume of raw materials needed) and at least 50,000 tons of French rapeseed as feedstock.