Crude Tall Oil Gains Value in Low-Carbon Fuel Markets as Renewable Diesel Demand Rises

Crude tall oil, a byproduct of kraft pulping, is becoming a strategic feedstock for renewable diesel and sustainable aviation fuel. As demand for low-carbon fuels grows, CTO offers pulp mills a new revenue stream tied to waste-based fuel policies in Europe and elsewhere. Tall oil fatty acids help fuel producers meet carbon reduction requirements under frameworks like RED III. Pricing for CTO increasingly follows used cooking oil benchmarks, linking traditional forest product markets directly to renewable fuel economics. This shift turns a mill byproduct into a competitive asset in the energy transition.