Crude tall oil is a by-product of softwood kraft pulping, a mixture of fatty acids, rosin acids and neutral unsaponifiable material. Supply is capped by how much softwood pulp gets made, which is why this market behaves differently from every other feedstock we handle: biofuel producers and oleochemical producers compete for the same fixed barrel. Three numbers decide where a parcel goes: acid number, rosin acid content and unsaponifiables.
CTO, TOFA and pitch are three different products
Fuel-quality CTO is generally characterised by a relatively high fatty acid content, up to around 65 %, an acid number below roughly 135 mg KOH/g and rosin acid below about 23 %. Softwood-only pulping gives higher yields and higher rosin content than mixed wood. Confirm the individual buyer's limits: these are market conventions, not a specification.
- Crude tall oil (CTO), the raw by-product from the pulp mill after acidulation of tall oil soap. This is what trades in bulk.
- Tall oil fatty acid (TOFA), the distilled fatty acid fraction. The largest downstream product group and the one oleochemical buyers want.
- Tall oil rosin (TOR), the rosin acid fraction, into adhesives, inks and sizing.
- Distilled tall oil (DTO), an intermediate fraction.
- Tall oil pitch (TOP), the heavy distillation residue. Lower value, and with a different regulatory position from CTO itself.
The Annex IX distinction most sellers get wrong
This is worth reading carefully, because it moves money and it is consistently mishandled in offers.
Tall oil pitch appears in Annex IX Part A as its own entry, point (h) in Directive (EU) 2018/2001. Tall oil itself appears inside point (o), the entry covering the biomass fraction of wastes and residues from forestry and forest-based industries, which lists bark, branches, thinnings, leaves, needles, tree tops, saw dust, cutter shavings, black liquor, brown liquor, fibre sludge, lignin and tall oil.
So both routes exist, but they sit in different places and a contract that cites the wrong letter invites an audit finding. Annex IX has been amended since 2018, so check the current consolidated text before writing a letter into a contract. Full lists on our Annex IX reference page.
Specification
| Acid number (AN) | mg KOH/g. The headline quality figure. |
|---|---|
| Fatty acid content | Percentage. What the oleochemical and fuel buyers are both really buying. |
| Rosin acid content | Percentage. High rosin favours the oleochemical route; fuel buyers generally want it lower. |
| Unsaponifiables / neutrals | The non-usable fraction. Drives yield. |
| Water and sediment | Settlement weight and handling. |
| Ash and inorganics | Sodium and other carry-over from the mill. |
| Sulphur | Present from the kraft process. Critical where the CTO is going into hydrotreatment for HVO or SAF. |
| Viscosity and pour point | Heated storage and pumping. |
| Wood origin | Softwood, hardwood or mixed. Drives the rosin/fatty acid split and therefore the buyer. |
| Certification | ISCC EU where the CTO enters the biofuel chain. |
How we broker it
We act for pulp mills placing CTO, for tall oil refiners sourcing it, and for fuel producers looking for Annex IX qualifying volume. Because supply is structurally limited by pulp production rather than by demand, term relationships matter more here than spot opportunism, and a mill that keeps its analysis consistent is in a genuinely strong position.
Sulphur deserves a specific mention. A mill selling into the oleochemical chain may never have been asked for it; a hydrotreating buyer will ask first. Having the number ready shortens the conversation considerably.
Frequently asked questions
What is crude tall oil?
A by-product of the softwood kraft pulping process, recovered by acidulating tall oil soap. It is a mixture of fatty acids, rosin acids and neutral unsaponifiable material. Supply is limited by pulp production volumes rather than by demand, which is why biofuel and oleochemical buyers end up competing for the same barrel.
Is crude tall oil an Annex IX feedstock?
Tall oil appears within Annex IX Part A point (o), the entry covering the biomass fraction of wastes and residues from forestry and forest-based industries, which explicitly lists tall oil. Tall oil pitch has its own separate entry at point (h). Those are two different positions and citing the wrong one invites an audit finding. Check the current consolidated text, as Annex IX has been amended.
What acid number does fuel-quality CTO need?
Fuel-quality CTO is generally characterised by an acid number below roughly 135 mg KOH/g, fatty acid content up to around 65 % and rosin acid below about 23 %. These are market conventions rather than a formal specification, so confirm the individual buyer's acceptance limits.
What is the difference between CTO, TOFA and tall oil pitch?
CTO is the raw by-product from the mill. TOFA is the distilled fatty acid fraction and the largest downstream product group. Tall oil pitch is the heavy distillation residue, lower in value and with its own separate Annex IX entry. They trade separately and at very different prices.
Why do biofuel and oleochemical buyers compete for CTO?
Because supply is fixed by how much softwood pulp is produced, not by how much anyone wants. Renewable diesel and SAF producers value CTO as an Annex IX qualifying feedstock, while oleochemical producers need it for TOFA and rosin. Both are bidding for the same limited volume, which is the defining feature of this market.
Do you handle tall oil pitch as well?
Yes. Pitch is a genuine market in its own right, lower in value than CTO but with its own buyers, and it carries a separate Annex IX position at point (h). It is worth offering as its own stream rather than as an afterthought to a CTO offer.
Who to ask about Crude tall oil (CTO)
Ask us. CTO or pitch to place? Send the acid number, the rosin content and the unsaponifiables. We answer the same working day, in English or Dutch, and there is no charge and no obligation for a market read or a second opinion on a specification.
You get Bart van den Brug directly, not a call centre and not a form that goes nowhere. We are an independent broker: we never take title, we do not trade our own book, and we are paid a commission only on business that actually concludes. That is why we will also tell you when the answer is no.
+31 6 115 83 448
[email protected]
Sustainable Commodities 3 B.V., Lemmer, the Netherlands
Last reviewed 09 August 2026 by Bart van den Brug, Sustainable Commodities 3 B.V. (KvK 99665042), Lemmer, the Netherlands. Regulatory references are given for orientation and are not legal advice; verify against the current Official Journal text before contracting.