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On April 29, Neste Corp. released its first quarter financial results and announced plans to enable the production of up to 500,000 metric tonnes per year of sustainable aviation fuel (SAF) at its renewable products refinery in Rotterdam, the Netherlands.
Currently, the Neste biorefinery in Rotterdam mainly produces Neste MY renewable diesel. The planned modifications to the plant will allow Neste to produce up to 500,000 metric tonnes of SAF per year within the existing capacity of the plant. The investment in the project is estimated at 190 million euros ($ 230.25 million).
According to Neste, the project is expected to be completed in the second half of 2023. Along with the ongoing expansion of the company’s Singapore refinery, Neste will have the capacity to produce 1.5 million tonnes of SAF per year by the end of 2023. The company can currently produce 100,000 metric tons of SAF per year.
As announced earlier this year, Neste also plans to build a new refinery for renewable projects in Rotterdam. A final investment decision on the project is expected to be made in late 2021 or early 2022.
“This investment by SAF in Rotterdam is another important step for Neste in executing our growth strategy: to become a global leader in renewable and circular solutions,” said Peter Vanacker, Chairman and CEO of Neste. “We are committed to helping our customers reduce greenhouse gas emissions by at least 20 million tonnes by 2030. And as the aviation industry is likely to resume a growth path after its recovery from the COVID-19 pandemic, there is a growing need and urgency to act on aviation-related emissions. Here, sustainable aviation fuels offer tremendous potential. “
“Aviation is at a turning point towards a more sustainable future,” added Thorsten Lange, executive vice president of renewable aviation at Neste. “This extension of our SAF production capacity will support the efforts of the aviation industry to reduce its greenhouse gas emissions and climate impact in the years to come. We are happy to be ready to respond to the growing demand for SAF, also motivated by the European Union’s climate ambitions which will soon translate into a proposal for binding legislation across Europe, in particular due to the role of leading Netherlands in this field. The use of SAF allows an immediate reduction in greenhouse gas emissions. It also reduces non-CO2 impacts, which account for a large portion of the total climate effects of aviation emissions. And it is already available today. “
Regarding first quarter results, Neste reported strong results for its renewable products segment. “The renewable products sales margin was healthy, sales volumes were high, and our production facilities hit a new quarterly production record,” Vanacker said in the company’s first quarter report, noting that the The company’s petroleum products continued to suffer from a weak refining market and oversupply caused by the COVID-19 pandemic.
The renewables segment reported comparable operating profit of 294 million euros for the quarter, up from 329 million euros in the first quarter of 2020. Demand for renewable diesel has been robust, Vanacker said, but the markets raw materials remained tight. “In this market situation, we were very pleased to achieve a healthy comparable selling margin of 699 USD / tonne, which was higher than in the corresponding period last year,” he added. .
Sales volumes for the first quarter reached 743,000 metric tonnes, up slightly from the first quarter of 2020. Neste’s renewable energy production facilities operated at an average utilization rate of 104% during the three-month period, reaching a new production record of 829,000 metric tons. tons. The share of waste and residue inputs was 90%.
Vanacker said the expansion of renewable energy capacity at the Neste plant in Singapore continues on the revised schedule. This project will increase annual renewable energy production capacity to 1.3 million metric tonnes with full operations expected by the first quarter of 2023.
In total, Neste recorded comparable operating profit of 302 million euros for the quarter, compared to 408 million euros in the first quarter of 2020. Operating profit amounted to 458 million euros, compared to 197 million euros. The comparable selling margin for renewable products was $ 699 per tonne, compared to $ 685 per tonne.