A Growing Problem with Global Consequences
Used cooking oil (UCO) has become one of the most sought-after commodities in the global energy transition. As demand for biodiesel and sustainable aviation fuel (SAF) surges, so too does the incentive for fraud. Reports estimate that Europe alone consumes roughly 130,000 barrels of UCO-derived biofuel per day — approximately eight times more than it collects domestically. The gap between supply and demand has created fertile ground for mislabelling, adulteration, and fraudulent certification.
For legitimate producers like Neutral Fuels, this is not an abstract concern. It is a direct threat to the credibility of the entire UCO-to-biodiesel value chain — and to the businesses and governments that rely on it.
What Does UCO Fraud Look Like?
UCO fraud typically involves the mislabelling of virgin vegetable oils — particularly palm oil — as used cooking oil to exploit regulatory incentives. Because waste-derived biofuels receive favourable treatment under EU renewable energy directives and similar frameworks, fraudulent actors can command premium prices for what is, in reality, unsustainable feedstock.
The challenge is that distinguishing between genuine UCO and adulterated product is extremely difficult through laboratory analysis alone. The chemical and physical compositions of UCO and certain virgin oils are remarkably similar, meaning verification has historically relied on paper-based auditing rather than direct testing of the fuel itself.
Investigations have found that for the vast majority of UCO collecting points in major exporting countries, no physical audits were conducted. Instead, a phone call or online search was considered sufficient to verify the legitimacy of a point of origin. This system is, by design, vulnerable to exploitation.
The Scale of the Issue
The United States imported over 3 billion pounds of UCO in 2023 — a dramatic increase from fewer than 200 million pounds in 2020. More than half of these imports originated from China. Concerns have been raised by U.S. senators and agricultural groups that much of this imported UCO may actually be mislabelled palm oil, undermining both environmental targets and domestic producers.
In the MENA region, where the biofuel industry is still developing regulatory infrastructure, the risks are equally significant. As the UAE positions itself as a hub for biodiesel production and SAF development, ensuring the integrity of feedstock supply chains becomes a matter of national credibility and regulatory compliance.
How ISCC Certification Provides a Safeguard
The International Sustainability and Carbon Certification (ISCC) system represents the current gold standard for UCO traceability. ISCC certification requires documented chain of custody from the point of origin — the restaurant or food service operation — through collection, processing, and final fuel production.
Neutral Fuels maintains full ISCC certification for its UCO collection and biodiesel production operations. Every litre of oil collected through our network is logged digitally from the moment of pickup, with our cloud-connected driver app recording quantity, quality, location, and timestamp data. This digital chain of custody provides a level of transparency that paper-based systems simply cannot match.
Technology as the Antidote to Fraud
The next generation of fraud prevention will rely increasingly on technology. Digital traceability platforms, IoT-enabled collection systems, and blockchain-based verification are all emerging as tools to close the gaps that paper-based auditing leaves open.
For the UAE's biofuel sector, investing in robust traceability infrastructure is not optional — it is essential for maintaining access to international markets, particularly as the EU tightens its Union Database for Biofuels and introduces stricter verification requirements for imported feedstock.
What Businesses Can Do
For food service operators generating UCO, the simplest and most effective step is to partner with a certified, licensed collector who maintains full digital traceability. When your waste oil enters a verified supply chain, it contributes to legitimate carbon reduction — and your business receives documented proof of that contribution.
At Neutral Fuels, every collection is tracked, every litre is accounted for, and every batch of biodiesel produced can be traced back to its source. In a market increasingly threatened by fraud, that traceability is not just good practice — it is essential. Learn more about our certified UCO collection services.
