We broker POME oil, SBEO and SSAO into European biodiesel, HVO and SAF producers. Both are residues rather than primary products, and both trade almost entirely on their classification under EU renewable fuel rules, a question settled nationally, not at EU level. In this market the regulatory position in the destination country is worth more than a point of FFA, and it is where most POME conversations should start.
What POME oil, SBEO and SSAO actually are
POME oil is the residual oil recovered from palm oil mill effluent, the waste water stream from crude palm oil extraction. It is not crude palm oil and not a refining side stream: it is oil recovered from a stream that would otherwise be treated as waste, which is precisely why it is attractive as a biofuel feedstock. It typically arrives with high free fatty acid content, significant moisture and solids, and needs pretreatment before use.
SBEO, spent bleaching earth oil, is the oil recovered from spent bleaching earth. Bleaching clay is used during vegetable oil refining to strip colour pigments, oxidation products and trace contaminants, and the spent clay leaves the process holding a substantial share of its own weight in oil. Recovering that oil is what produces SBEO. Free fatty acid content is commonly in the region of 3 to 25 % with MIU around 3 %.
SSAO, spent soapstock acid oil, is a different product and the two are frequently confused. It derives from the soapstock stream rather than from bleaching earth, carries a much higher free fatty acid content, commonly in the region of 50 to 70 %, and has a naturally low cloud point that makes it of interest for winter grade production. Quoting one when you mean the other is an easy way to lose a buyer's confidence.
Both benefit from being residues rather than co-products. That distinction is the entire value proposition, and it is also the part most likely to be challenged.
Classification: the part that decides the value
POME and its derivatives appear in Annex IX of the Renewable Energy Directive, and the exact letter under which a given stream falls has been the subject of genuine and continuing debate. It matters enormously, because Part A and Part B carry different targets, different caps and different national treatment.
Two practical warnings for anyone contracting POME into Europe. First, implementation is national. Member states transpose RED III themselves, and they have taken visibly different positions on multipliers, on caps and on which residues qualify. A cargo that works commercially in one market can be worth substantially less in the country next door.
Second, national policy on POME has been actively changing, including restrictions being introduced in some markets on how POME-derived fuel can be counted towards obligations in coming years. Anyone signing a multi-year POME contract should verify the position in the specific destination market for the specific delivery years, in writing, rather than relying on how it worked last season.
We will tell you what we understand the position to be and where we are not certain. On this product in particular, a broker who sounds completely confident about every member state is a broker to be careful with.
Specification and handling
Movement into Europe is normally by parcel tanker or ISO tank, with heated storage depending on the material. Pretreatment capacity at the receiving end is a real constraint, and it narrows the buyer list more than the specification does, a producer without pretreatment simply cannot take the cargo at any price.
| FFA (free fatty acid) | Characteristically high; the primary quality parameter. |
|---|---|
| Moisture and impurities (M&I) | Drives pretreatment cost and settlement weight. |
| Total fatty acid (TFA) | The usable fraction, and often the pricing basis. |
| Insoluble solids | Sludge and sediment carry-over from the effluent stream. |
| Iodine value | Unsaturation; cold-flow behaviour downstream. |
| Sulphur and phosphorus | Critical for hydrotreatment routes. |
| Metals | Iron and others from the mill and from storage. |
| Certification | ISCC EU with the correct scope, plus a valid proof of sustainability. |
| Traceability | Mill of origin and the recovery route; audited in practice. |
How we broker it
We act for mills, refiners and aggregators placing volume into Europe, and for European producers looking for certified supply they can actually run.
Our first questions are about certification scope, traceability to the mill, and which destination market the cargo is aimed at, because if the classification does not work in that market, the specification does not matter. That order of questioning saves everyone a great deal of time.
Frequently asked questions
What is POME oil?
POME oil is the residual oil recovered from palm oil mill effluent, the waste water stream from crude palm oil extraction. It is a residue rather than a primary product, which is what makes it valuable as a biofuel feedstock under EU renewable fuel rules. It typically has high free fatty acid content, significant moisture and solids, and requires pretreatment before use.
Is POME an Annex IX Part A or Part B feedstock?
POME and its derivatives are listed in Annex IX, and the precise letter applying to a given stream has been the subject of continuing debate and revision. Because the consequences differ between Part A and Part B, and because implementation is national, the practical answer is to confirm the position for the specific stream in the specific destination member state before contracting.
Does POME-derived biofuel count towards EU targets everywhere?
Not uniformly. Member states transpose the Renewable Energy Directive themselves and have taken different positions on multipliers, caps and residue eligibility, and some have been actively changing their treatment of POME. Verify the position for your destination market and for the specific delivery years, in writing. This is the single biggest commercial risk in a POME contract.
What is the difference between SBEO and SSAO?
They are two different products and they are constantly confused. SBEO is spent bleaching earth oil, recovered from the bleaching clay used to strip colour and contaminants during vegetable oil refining, with free fatty acid commonly around 3 to 25 %. SSAO is spent soapstock acid oil, derived from the soapstock stream, with free fatty acid commonly around 50 to 70 % and a naturally low cloud point that suits winter grade production. Different origin, different specification, different buyers.
What is SBEO?
Spent bleaching earth oil, the oil recovered from spent bleaching earth used in vegetable oil refining. Like POME it is a residue rather than a co-product, and like POME its value in the biofuel chain depends on its classification and on national implementation.
What certification does POME need?
ISCC EU is the standard route into the EU biofuel chain, with the certificate scope covering the actual material and activity, and a valid proof of sustainability accompanying each delivery. Traceability back to the mill of origin is audited in practice, not merely declared.
Can European producers actually run POME?
Only those with adequate pretreatment capacity. High FFA, moisture and solids mean POME is not a drop-in feedstock, and the absence of pretreatment at the receiving end rules a buyer out regardless of price. This narrows the realistic buyer list considerably and is worth establishing before a cargo is offered widely.
Who to ask about POME, SBEO & SSAO
Ask us. POME, SBEO or SSAO to place into Europe? The first thing to settle is how it will be classified in the destination market. 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.