Sustainable Aviation Fuel Claims Undermined by Fraud and Deforestation

Leading biofuel producers in Europe, including Repsol, Neste, and Shell, have significantly increased investments in the production of Sustainable Aviation Fuel (SAF). Backers claim that SAF, when derived from waste products such as used cooking oil (UCO), can reduce greenhouse gas emissions by as much as 80%.

This cross-border investigation by  Climate Home News, InfoAmazonia and The Straits Times started with the idea of exploring whether the EU’s sustainable aviation fuel (SAF) targets could be met amid supply shortages, whether deforestation and land conflicts were linked to supply chains for European SAFs, and whether there was any potential fraud occurring in the supply chain for used cooking oil in Southeast Asia – currently a key source of feedstock for jet fuel refiners in Europe and Singapore..

Eventually the main part of the story came to focus on the UCO trade between Malaysia, the world’s second-biggest palm oil producer, and Spain, Europe’s largest aviation market and home to one of its SAF pioneers, Repsol. Barely used and virgin palm oil – not permitted under European Union rules because of its links to rainforest loss – is being passed off as UCO, suppliers in Malaysia told journalists.

After being denied access to comprehensive trade data by EU regulators and Repsol, the team was able to piece together the Spanish energy giant’s supply chain in alternative ways: the reporters submitted FOI requests, obtained private commercial trade data and attended UCO collection events in person in Malaysia to reveal for the first time a complete picture of Repsol’s SAF supply.  The journalists have been able to trace the full supply chain of Repsol from its new SAF refinery in Cartagena to the Malaysian city of Melaka. 

While UCO struggles with fraud allegations in Asia, InfoAmazonia in Brazil uncovered the challenges of resorting to crop-based SAF – allowed in some parts of the world due to the lack of harmonised green standards. The journalists found that the palm oil producer behind a planned biorefinery in the Amazon region - billed as Brazil’s first SAF project - is growing the crop on land areas subject to sanctions by the national environment agency over illegal deforestation, and is struggling financially after rights abuse allegations.

This investigation compiles a global picture of the SAF industry and the obstacles it faces in meeting rising demand with environmental integrity as more countries seek to cut aviation emissions while increasing air travel. Fuel producers will need to address these challenges fast, as they are required to supply airports across Europe with increasing amounts of SAF from this year under new EU and UK rules, with other parts of the world also planning to introduce mandates.

Photo: After purchasing used cooking oil from the public, Evergreen Oil & Feed staff pour it into barrels to make it easier for processing at their filtration plant in Melaka, Malaysia, May 2025. (c) Sairien Nafis