Investing in Renewable Fuels

Investing in Renewable Fuels

Author: ChemistryViews

Neste has agreed to acquire Bunge Loders Croklaan’s refinery plant located in Rotterdam, the Netherlands, for a purchase price of 258 million euros. The refinery plant is located next to Neste’s existing biorefinery, and it consists of a pre-treatment facility, tank farm, jetties, and has a pipeline connection to Neste’s site.

To meet the growing demand for renewable diesel, sustainable aviation fuel, and raw materials for chemicals, Neste focuses on building a global renewable energy raw material and production platform. Neste will increase its annual renewable energy production capacity from 3.2 to 4.5 million tons by the first quarter of 2023, including 1.3 million tons from the expansion of its Singapore facility. The refinery now acquired offers additional pre-treatment capacity and terminal infrastructure to handle the increasingly complex waste and residue raw materials. Neste is committed to increasing the proportion of waste and residues in its renewable energy raw material mix to 100% by 2025 and to expanding its production platform to enable its customers to achieve greenhouse gas savings of over 20 million tonnes by 2030.

Neste has been active in the Netherlands since 2011, when the renewable products facility in Rotterdam began operations. Together with the refinery in Singapore, the Rotterdam plant is the world’s largest and most advanced refinery for renewable fuels. Neste’s plant in Sluiskil, The Netherlands, is responsible for the storage and pre-treatment of renewable raw materials, and Neste Demeter B.V. supplies raw materials to the company’s renewable products plant. At the beginning of 2020, Neste also acquired a terminal in Rotterdam for the storage, refining, and blending of renewable waste and residue-based raw materials. In 2019 Neste opened an office in Hoofddorp in the Amsterdam area, which serves as a global hub for the growing renewable aviation business. Neste MY Renewable Diesel™, manufactured from renewable raw materials, is currently available at more than 100 sales points across the country.

The closing of the transaction with Bunge is subject to customary closing conditions and regulatory approvals. The transition will take place in phases. The full pre-treatment capacity of the refinery plant will be available to process the raw material from Neste by the end of 2024.


 

 

 

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