Finnish Neste suspected palm oil fraud in Malaysia as well

An investigation says Neste’s Malaysian supply chain may have allowed fresh palm oil to be sold as waste oil for green jet fuel. Photo: SVT.

An investigation by Climate Home News, SVT and Yle has raised concerns about the supply chain behind sustainable aviation fuel used by Finnish company Neste.

The report centres on a Malaysian supplier of used cooking oil, a key raw material for so-called green jet fuel. During a public collection drive, an undercover reporter was able to hand in fresh palm oil, which was accepted without checks and mixed with other collected oil.

While the investigation found no direct evidence that such oil was used by Neste, experts say it becomes difficult to trace and separate once materials are mixed in the supply chain. Neste said it is not aware of verified fraud linked to its sourcing and that it will investigate the findings.

Data reviewed in the investigation shows Neste sourced around 250,000 tonnes of used cooking oil from Malaysia in 2024. This is more than double estimates of the country’s annual collection, raising questions about whether all supplies are genuine waste oil.

Sustainable aviation fuel is seen as a key tool to cut emissions from flying. However, analysts warn that limited supply of real waste materials and weak oversight in sourcing countries increase the risk of fraud across the industry.

About Alexander Vittrup

Journalist Alexander Christian Vittrup was employed at ScandAsia Magazine and Website for six months from August 2025 until January 2026. Circumstances beyond our control made it possible for us to keep him here also during the six months from February 2026 until July 2026 - making it a full year here.

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