WHAT IS IT?
Fatty Acid Methyl Ester (FAME) is the original and most widely produced biodiesel, made by reacting vegetable oils or animal fats with methanol in the presence of a catalyst (transesterification). Unlike HVO, FAME is not chemically identical to fossil diesel — it is an ester-based fuel with different properties.
HOW IS IT MADE?
Vegetable oil / animal fat + Methanol (+ catalyst NaOH or KOH) → FAME + Glycerol
1 tonne oil + 0.11 tonne methanol → 1 tonne FAME + 0.1 tonne glycerol
Glycerol is a valuable co-product used in cosmetics and pharmaceuticals.
TYPES BY FEEDSTOCK
RME (Rapeseed Methyl Ester): From rapeseed oil. Dominant in Europe. Good cold flow properties.
PME (Palm Methyl Ester): From palm oil or PFAD. Dominant in Southeast Asia (Indonesia B30/B35 mandate). Poor cold flow — gels in cold climates.
SME (Soybean Methyl Ester): From soybean oil. Dominant in USA. Used in B20 blends.
UCOME (Used Cooking Oil Methyl Ester): From UCO. Double-counted under RED II. Premium grade.
Tallow ME: From animal fats.
BLEND NOMENCLATURE
B5: 5% FAME + 95% fossil diesel
B7: 7% FAME — EU standard (EN590 allows up to 7%)
B20: 20% FAME — common in Southeast Asia and USA fleets
B30/B35: Indonesia mandate for diesel (rising to B40)
B100: Pure FAME — requires engine modifications and cold flow management
FAME vs HVO
FAME: Cheaper to produce, but lower oxidation stability, poor cold flow (PME), not fully drop-in at high blends
HVO: More expensive, fully drop-in at any blend, better cold flow, longer shelf life
For EU compliance, FAME gets single-counting while UCO-based FAME (UCOME) gets double-counting.
TRADE CORRIDORS
Major producers: Indonesia (PME — world's largest), Argentina (SME), EU (RME, UCOME), USA (SME)
Major buyers: EU (B7 mandate), USA (RFS), Singapore, Japan
Tetra relevance: Indonesia → EU and Asia corridors. UCOME from SEA to EU high-growth.
SPECIFICATIONS (EN14214 — European Standard)