Alternative sources
A range of plant-based oils can be alternative sources to animal-derived additives, however they are not all
suitable for the production of notes. In addition to the technical requirements, a viable alternative additive needs
to have a reliable supply chain; to be available at reasonable cost; and, for certain sources with wider
environmental considerations, the product may need to be obtainable under a well-developed sustainability
certification framework (see Section 6).
The advice from De La Rue and Innovia Security is that an additive derived from palm oil would appear to be the
only alternative that could potentially meet these requirements. This is consistent with advice received from
Efeca. Palm oil is a good source of fatty acids. Whilst there are concerns about certain environmental and social
impacts of palm oil, growing awareness of these has led to the development of a range of sustainability assurance
systems, such as certification schemes, which could be adopted to mitigate potential impacts (see Section 6).
The Bank asked its suppliers to consider coconut oil. However, they judged that it would not meet the criteria at
this time since supply chains are insufficiently mature and there is no generally-accepted sustainability
certification framework in place. Products derived from coconut oil are not, therefore, being trialled.
Other potential plant sources are lower yielding, making them inefficient, or require chemical transformation
(“hydrogenation”) to be usable and have been ruled out. In particular, soybean oil, rapeseed oil and sunflower oil
are too low in their content of saturated fat — and therefore fatty acids — to make them viable commercial
sources.
Polymer notes are the product of multiple, interdependent materials. Because of the complexity of the note
production process and the key role that the polymer substrate performs as the platform for all of the additional
components and security features, the Bank and its suppliers must be very confident that the substrate can be
provided consistently to the technical specification required without affecting the production process or
functionality of the note. Given this, extensive testing and trials of polymer chemical additives derived from palm
oil must be undertaken. These tests are underway and are expected to complete in Summer 2017. De La Rue and
Innovia Security have a high degree of confidence that a substrate manufactured from polymer that utilises such
an additive can meet the Bank’s technical and operational requirement