Total’s La Mede Biodiesel Plant Threatened by Government Move to Exclude Palm Oil as Biofuel Feedstock

French energy group Total SA says the French National Assembly’s decision to exclude palm oil as a biofuel feedstock could put its La Mede biodiesel refinery in southern France at risk, The Star reports. On 19 December, the assembly voted to end tax incentives for adding palm oil to diesel fuel as of 2020.  French parliamentarians also decided to treat palm biodiesel as a regular fuel so it cannot count towards Europe´s targets for renewable energy in transport. 

In 2015, Total converted the loss-making La Mede facility from a crude oil refinery into a 500,000 tons/year biodiesel plant. It pledged that palm oil would account for less than half of its feedstock, the remainder being French rapeseed crops and recycled oil. 

The French decision has caused tensions with palm oil producers in Malaysia and Indonesia.  Malaysian Prime Minister Mahathir Mohamad has said he will be writing to French President Emmanuel Macron on the issue and that the restrictions would affect the country’s relations with Europe.