Palm Oil Refining By-Products: Commercial Sourcing of PFAD & Acid Oils

Palm Oil Technical Guides

PalmAzia · Malaysian Bulk Exporter◿ 4 min readUpdated July 2026

Industrial palm oil refining generates valuable by-products that serve as key raw materials for the oleochemical, animal feed, and biofuel sectors. The primary by-product of physical refining is Palm Fatty Acid Distillate (PFAD), which contains a high concentration of free fatty acids (FFA). Chemical refining generates soapstocks and acid oils as secondary side streams. Sourcing these industrial by-products requires evaluating chemical properties, processing paths, and global supply chains. This technical guide explores the commercial applications, specifications, and sourcing parameters of palm oil refining by-products.

Sourcing Industrial Feedstocks

The yield and quality of refining by-products are determined by the refining method and feedstock quality. Refineries process raw materials sourced from a registered crude palm oil supplier to maximize output. The refined oils are subsequently distributed by a certified refined palm oil supplier.

📚 Deodorization Link

PFAD is recovered during the high-vacuum steam stripping stage. Discover column operating parameters in our technical guide on the palm oil deodorization process.

Palm Fatty Acid Distillate (PFAD) Specifications

PFAD is the primary by-product of physical refining, which is the standard processing route for palm oil. During deodorization, steam strips out free fatty acids, which are condensed and recovered. PFAD is a light brown solid at room temperature, melting into a clear liquid at 45°C.

Commercial PFAD must meet strict quality standards, requiring a minimum FFA content of 70% (typically 80% to 82%), a maximum moisture and impurities (M&I) level of 1.0%, and a saponifiable matter minimum of 95%. As an integrated B2B bulk palm oil supplier, PalmAzia exports high-grade PFAD from Port Klang and Pasir Gudang.

Acid Oils & Soapstocks from Chemical Refining

Chemical refining neutralizes free fatty acids using caustic soda, producing soapstocks (saponified fatty acids). To recover the fatty acids, the soapstocks are treated with sulfuric acid (acid splitting), yielding acid oils.

Acid oils feature a lower FFA content (typically 50% to 65%) and higher moisture levels than PFAD. They are used as cheap energy sources in animal feed formulations and as raw materials for laundry soap manufacturing. Importers evaluate specifications with a trusted RBD palm oil supplier to determine the best processing route.

Commercial Applications of PFAD

PFAD is highly valued across several global industries:

  • Renewable Diesel (HVO) & Biodiesel: PFAD is a non-food, waste-derived feedstock that reduces greenhouse gas emissions, making it highly sought after by European biofuel plants.
  • Oleochemical Manufacturing: Splitting PFAD yields palmitic and oleic acids, which are used to manufacture cosmetics, plastics, and pharmaceutical bases.
  • Animal Feed Mills: Processed into calcium soaps to provide bypass fats for dairy cattle, boosting milk yields and energy intake.

To arrange shipping configurations for liquid fats and distillates, buyers coordinate with a reliable bulk palm oil supplier to plan flexitanks equipped with steam heating pads or ISO tanks.

Sourcing Sustainable & Certified By-products

Responsible sourcing requires verifying that the refining by-products are compliant with international biofuel and environmental standards. Sourcing from a certified sustainable palm oil supplier ensures all batches comply with RSPO and ISCC (International Sustainability and Carbon Certification) standards.

Additionally, destination seasonal conditions dictate whether cloud point parameters must be adjusted. Coordinate export requirements with a reliable Malaysia palm oil supplier to manage shipments to cold regions.

By-Products Specifications Comparison

The table below summarizes typical commercial specifications for PFAD vs acid oils generated during refining:

Specification ParameterPalm Fatty Acid Distillate (PFAD)Palm Acid Oil (PAO)
Free Fatty Acid (FFA) testing (FFA)Min 70% (typically 80% – 82%)50% – 65% (Lower Acidity)
Moisture & Impurities (M&I)Max 1.0%2.0% – 5.0% (Higher moisture)
Saponifiable MatterMin 95%Min 85%
Physical AppearanceLight brown solid (melts to liquid)Dark brown, viscous liquid
Primary ApplicationsBiofuels, fatty acids, animal feedLaundry soaps, animal feed

Frequently Asked Questions (FAQ)

Is PFAD classified as waste or a residue?

Under European biofuel regulations (such as RED II), PFAD is classified as a processing residue. This classification allows it to count toward renewable energy targets, driving demand from European HVO manufacturers.

Why must PFAD be heated before unloading?

PFAD contains high levels of saturated palmitic acid, giving it a melting point of approx. 45°C. It solidifies inside tanks and flexitanks during transit, requiring steam heating for 24 to 48 hours to liquefy the distillate before pumping.

Can PFAD be refined into edible oil?

No. PFAD consists almost entirely of free fatty acids, odor compounds, and thermal decomposition products stripped from the crude oil. It is unsuitable for food consumption and is strictly used for industrial oleochemicals and biofuels.

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