As renewable fuels, chemicals, and material markets continue to evolve, customers are navigating a more complex feedstock environment than ever before. Tall oil fatty acids (TOFA), derived from crude tall oil (CTO), remain an important part of this landscape, supported by a supply system that is fundamentally different from food-based and agricultural oils. Understanding how that system works helps clarify TOFA’s role today and into the future.  

From Pine to Product: How TOFA is Made 

CTO is a byproduct of the kraft process used in the production of softwood pulp.  This pulp is primarily used in packaging, hygiene products, and other growing markets. It is in the pulping and chemical recovery processes where CTO is produced. Later, CTO is further refined to produce TOFA, tall oil rosin (TOR) and tall oil pitch (TOP), all of which are used in a range of industrial applications. 

Since TOFA is derived from an existing industrial process, its availability is not driven by crop cycles, harvest yields, or agricultural land use common in alternatives. Instead, it is linked to long-term demand for paper-based products and the efficiency of modern pulp mills.  

Sustainability Starts with the Feedstock 

Pine-based feedstocks offer a distinct sustainability profile. TOFA is: 

• Bio-based and non-food sourced. 

• Derived from responsibly managed forests grown on marginal land. 

• Not genetically modified. 

• Not associated with deforestation or land-use change. 

• Not in competition with food crops for farmland. 

The forests supplying the pulp industry are managed under long-established forestry practices that emphasize regeneration, certification, and long-term stewardship. The trees are typical grown on marginal land. As a result, TOFA is produced without expanding agricultural land or displacing food production, a key distinction from seed- and animal-based oils.  

Interpreting Changes in the Pulp Industry 

Shifts within the pulp and paper industry have raised questions about long-term CTO and TOFA supply. While some mills have closed in recent years, these changes largely reflect efficiency improvements, consolidation, and the transition to newer, more competitive assets. 

At the same time, demand for softwood pulp continues to grow, driven by packaging, hygiene, and e-commerce applications. These segments are the primary source of CTO. As production concentrates on modern, efficient facilities, CTO supply remains aligned with long-term market needs rather than signaling an industry decline. 

TOFA and the Biofuels Conversation 

Biofuels have become an increasingly visible part of the feedstock discussion, particularly as regulatory incentives and blending mandates expand. CTO and TOFA are used as biofuel feedstocks in the European Union, and interest in non-food-based alternatives continues to grow.  

However, the role of TOFA in biofuels is naturally limited. Global renewable diesel demand far exceeds the total volume of CTO produced each year. In addition, refining CTO into TOFA simultaneously generates TOR, which is not suitable for conversion into fuel markets. These factors create a natural balance that prioritizes high-value chemical applications while allowing TOFA to participate in fuels only as a complementary input.  

Comparing TOFA with Alternative Fatty Acid Sources 

Vegetable- and Animal-based sources of fatty acids such as tallow, soy, palm, and rapeseed play an important role in renewable fuel markets, but their supply dynamics differ significantly from pine-based feedstocks. These oils are tied to agricultural and livestock cycles, weather conditions, crop production costs, land availability, and food demand. They are also more exposed to regulatory scrutiny related to land use and deforestation. 

TOFA, by contrast, is a byproduct of an established industrial value chain. Its supply is not dependent on planting/harvest decisions or farmland expansion. In many industrial applications, TOFA is valued for its consistent composition and performance characteristics, which have made it a long-standing reference material across multiple end uses.  

A Stable Foundation for Industrial Markets 

The feedstock landscape will continue to evolve as energy markets, regulations, and sustainability expectations change. Within this environment, TOFA remains a well-established and reliable input for industrial applications that require consistency, performance, and a strong sustainability profile.  

Built on responsibly managed forests and integrated production systems, pine-based fatty acids continue to support a wide range of markets without competing with food systems or driving land-use change. As interest in renewable solutions grows, TOFA’s role remains defined by balance, efficiency, and long-term value rather than short-term market shifts.