Neste Makes Final Investment Decision Expanding Renewable Product Production Capacity

2 January 2019 – Last month, Neste made the final decision to invest more than $1.5 billion for additional renewable products production capacity in Singapore. Neste currently has a renewable products production capacity of 2.7M metric tonnes annually. Of this total, over one million is produced in Singapore, the same amount in Rotterdam in the Netherlands and the rest in Porvoo, Finland. This investment will increase total renewable product capacity at the Singapore facility by up to 1.3M tonnes per year. Neste’s renewable product refineries are all capable of producing renewable diesel, alternative jet fuel, and raw materials for various polymers and chemical materials. Neste is targeting the first half of 2022 to initiate the new production line in Singapore and in the meantime will continue to increase existing capacity to 3M tons by 2020 through operational optimization efforts.

Neste has further confirmed with CAAFI that when this facility comes online, and as other enhancements are completed at their other facilities, they plan to have a 1M tonnes capacity for HEFA SAJF from their total production slate of 4.5M tonnes by 2022. Exact levels will assumedly be determined by market and policy fundamentals, as well as executed offtake agreements.

CAAFI’s Executive Director Steve Csonka commented, “This is very welcome news, and reflects Neste’s recent attention on, and collaboration with, the aviation marketplace, as Neste also recently announced that they are again producing HEFA-SPK at Porvoo. This announcement reflects a total production capacity for HEFA-SPK of 329M gpy by 2022. HEFA-SPK can currently be blended with petroleum jet at levels up to 50%. Additionally, if the aviation industry moves forward with the option of using renewable diesel as a blending component, we could see Neste being a major contributor to assisting the aviation industry with lowering its net GHG levels via the use of both HEFA-SPK and HDRD as a blending component. In either case, CAAFI would expect to see potentially significant amounts of sustainable alternative jet fuel enter the US West Coast markets via import, as supported by low carbon fuel standard (LCFS) policy mechanisms.”

For more information see the press release here.

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