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1. What is PFAD PFAD stands for Palm Fatty Acid Distillate. It is a processing residue resulting from physical refining of crude palm oil products. At room temperature it is a light brow semi-solid, melting to a brown liquid on heating. Up to 80 percent of PFAD is free fatty acid (FFA), with palmitic acid and oleic acid being the major components. The remaining 20 percent is made up of components including triglycerides, partial glycerides, and vitamin E, sterols and squalene's. 2.How is PFAD used? PFAD is used as a renewable raw material in biofuels production as well as to produce candles, soaps, other oleochemical products, and animal feed. Specific to biofuel production in Europe, the EU allows Member States to account PFAD consumption towards greenhouse gas emissions reductions under its Renewable Energy Directive. The amount of emissions reductions depends on the PFAD technical classification, a residue or co-product, which is up to the individual Member State. To verify the emissions reductions, the EU relies on voluntary certification schemes, such as the International Sustainability and Carbon Certification system. 3.What are the benefits6 of using PFAD Producing renewable fuels using PFAD is good for the climate. It is an efficient way to use waste generated through the palm oil refining process, preventing PFAD from going to literal waste. A by-product that is undesirable from the food industry perspective can be very desirable for other sectors. Neste MY Renewable Diesel7 which is refined from PFAD and other waste and residue materials, such as Used Cooking Oil (UCO), helps to replace crude oil-based diesel in transportation. Using Neste MY Renewable Diesel can reduce greenhouse gas emissions by 90 percent on average compared to a diesel-powered vehicle using conventional fossil fuel-based diesel.