Circle K, a premier service station chain in Ireland, has assured that it does not import biofuels from Asia or the UK amidst increasing fears of fraudulent labelling and potential misrepresentation. This comes at a time when the European Commission is scrutinising the operations of Indonesian biofuel producers amid suspicions of inaccurate labelling and subsequent tax evasion in EU countries. There is a growing modicum of concern in the industry regarding recycled waste cooking oil from China and other Asian countries, which could possibly be palm oil disguised and relabelled.
Circle K remains committed to not sourcing its biofuels from Asia or the UK and has divulged plans to devote €2 million towards escalating their supplies of converted waste cooking oil, referred to as hydrogenated vegetable oil (HVO), this year. The company asserts that all its HVO supplies adhere to the International Sustainability and Carbon Certification (ISCC) standards. It is noteworthy that ISCC is one of the organisations which highlighted the questionable nature of some biofuel from China and Asia.
In a statement, Circle K expressed that it abides by the finest procurement practices and aligns only with trustworthy suppliers to ensure the European standard compliance of their HVO supplies, with respect to supply chain and carbon reduction verification.
The Irish government is a vocal advocate of HVO, pushing oil companies to guarantee that 17% of their motor fuel sales are renewable through the Renewable Transport Fuel Obligation. Substituting with HVO reduces this obligation by two-thirds, making HVO a favoured choice and thereby surging its usage.
However, the skyrocketing production of HVO in certain countries has led to industry apprehensions about its real source. The worry is that Asian producers may be utilising palm oil —a major contributor to rainforest deforestation and deemed unsustainable by the EU— under the cloak of HVO. Last year, ISCC halted the certification of some HVO production in China, owing to the inability to ascertain the source of fuel.