We broker crude tall oil (CTO) from kraft pulping into fuel and oleochemical outlets. On what sets the value: the split between fatty acids and rosin acids, plus the unsaponifiables, and none of it is negotiable because the wood and the mill decide it. On where it goes, the chemical market can often pay more for rosin rich material than the fuel market will, so if you are being offered CTO at a fuel price it is worth asking what the rosin content is first.
- 1Kraft pulping of pine
- 2Soap skimmed from black liquor
- 3Acidulation to crude tall oil
- 4Graded on acid number and rosin
- 5To fractionation or to fuel
Crude tall oil is a pulp mill by-product, so its availability follows paper demand and not the oilseed harvest. Rosin and fatty acid buyers bid for the same barrel, which is what usually sets the floor.
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.
What is actually in a parcel of crude tall oil
Crude tall oil is a kraft pulping co-product, not a crop, and its composition moves with the wood species and the mill. That variability is the whole commercial story: two parcels from different mills are not interchangeable, and a buyer who has qualified one is not automatically a buyer for the other.
| Fraction | Typical range | Why a buyer cares |
|---|---|---|
| Resin (rosin) acids | 26 to 42 % | Drives value for rosin derivatives; abietic, dehydroabietic, isopimaric and pimaric acids |
| Fatty acids | 36 to 48 % | Oleic, linoleic, palmitic. The fraction a fuel or oleochemical buyer is chasing |
| Neutrals and unsaponifiables | 10 to 38 % | The wide end of this range is what makes a parcel hard to place |
| Sulphur | Report it | Kraft origin means sulphur is present; it governs whether a hydrotreater can take the material |
| Water and ash | Report both | Ordinary quality parameters, and ordinary sources of dispute |
The rosin-to-fatty-acid ratio decides which industry you are selling to. Rosin-rich material goes towards adhesives, inks and sizing; fatty-acid-rich material goes towards fuel and oleochemicals. A seller who reports only a single acid value has not told a buyer which of those two markets they are in.
Crude tall oil also sits in a live policy argument. It has established chemical uses, and diverting it to fuel is contested by the industries that have used it for decades. That is worth knowing before building a long-term position on it, and it is the sort of thing we would rather say out loud than leave a client to discover.
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. |
What a crude tall oil buyer will ask you
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.
What is actually in it, and what it splits into
Crude tall oil is a by-product of kraft pulping of coniferous wood, recovered from the black liquor soap. Its value sits in the ratio between two acid families, and that ratio is set by the wood and the mill rather than by anything a trader can influence.
- Fatty acids become tall oil fatty acid (TOFA) on distillation, and TOFA is the fraction most relevant as a biofuel and oleochemical feedstock.
- Rosin acids become tall oil rosin (TOR), used in adhesives, inks and sizing. A high rosin fraction pulls a parcel toward the chemical market rather than the fuel market.
- Unsaponifiables, mostly sterols and hydrocarbons, which dilute both outlets and are the parameter buyers scrutinise.
- Pitch, the distillation residue, which finds energy outlets.
- Acid number is the headline figure on any CTO offer, alongside moisture, ash and unsaponifiable content. Quote it and the sulphur figure together and you have said most of what a buyer needs.
Worth knowing commercially: CTO sits at the intersection of a fuel market and a chemical market that compete for the same barrels, and the chemical market can often pay more for the rosin rich material. If you are being offered CTO as a straightforward biofuel feedstock at a fuel price, ask what the rosin content is before you assume that is the best home for it.
Frequently asked questions
What determines the value of a crude tall oil parcel?
The split between fatty acids and rosin acids, plus the unsaponifiable content, and none of it is negotiable because it is set by the wood species and the mill. A fatty acid rich parcel leans toward fuel and oleochemical outlets; a rosin rich one leans toward adhesives, inks and sizing, where the chemical market can often pay more. Quote acid number, moisture, ash, unsaponifiables and sulphur and a buyer can work with it.
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. Do not assume a parcel qualifies on the strength of the product name either: qualification depends on the certification chain and the documentation behind that specific volume, so check that the scope on the certificate covers both the product and the activity.
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.
Market news
The most recent headlines touching this market, followed by wider news from across the feedstock and renewable fuel sector. The links go to the publisher; we do not host or edit their reporting, and a headline here is not our endorsement of it. Scroll for more.
- Kimchi waste could become viable feedstock for bioplastics
- Braskem biobased polymer helps Deterra drug disposal pouch earn packaging awards
- Eni and PETRONAS to explore high-performance bio-gasoline
- Linglong signs $2 billion Egypt investment MoU
- BTMA to represent European national associations at Tyres Europe board meetings
- Osaka Gas claims STS LNG bunkering first in Osaka Bay
- ISWG-GHG 22: Non-profits react
- USTC brings Copenhagen-based offices together in new hub
- ORLEN instigates new Baltic regional energy initiative
- TotalEnergies Lubmarine launches lubricant for 4-stroke medium speed marine engines
- IMO carbon price heads for December showdown
- LyondellBasell: Pyrolysis Reactors Installed for MoReTec Plant in Wesseling
- Sustainable aviation fuel pioneer completes successful trials
- Louis Dreyfus Company to generate biogas from citrus waste
- Nature by Design: A decade of IUCN, Monaco collaboration driving circular solutions for biodiversity
- European Digital Sustainability Skills Conference
- UCL reacts to IMO ISWG-GHG: ‘Steady progress on the Net Zero Framework’ made but ‘high uncertainty’ remains
- ISWG-GHG 22: ‘Genuine willingness’ for further NZF progress, observes Chair
18 headlines, updated automatically. Last refreshed .
Sources and further reading
Primary sources for the rules and figures on this page, so you can check them yourself. Legislation is amended: always read the consolidated text on the date that matters to you.
Who to ask about Crude tall oil (CTO)
Just ask. CTO or pitch to place? Send the acid number, the rosin content and the unsaponifiables. You get Bart van den Brug on the other end, same working day, in English or Dutch, and across the team also in French, Portuguese, Polish, Czech and Russian.
On how we work: on the feedstocks and fuels on this site we are a broker. We never take title, we do not trade our own book, and we are paid a commission on business that concludes. Additives are the one exception: those we also buy and sell for our own account, and we say in which capacity we are acting before you commit to anything. Either way you will hear it from us when the answer is no, or when your parcel is not ready for the conversation you want to have. A market read or a second opinion on a specification costs nothing and commits you to nothing.
Happy to look at whatever you have, even if it is half an analysis and a question.
+31 6 115 83 448
bart@sustainablecommodities.eu
Sustainable Commodities 3 B.V., Lemmer, the Netherlands
Ask about Crude tall oil (CTO)
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Or e-mail us directly: bart@sustainablecommodities.eu
Last reviewed 08 September 2026. Regulatory references are given for orientation and are not legal advice: verify against the current Official Journal text before contracting.