Neste to modify Rotterdam biorefinery to enable significant SAF production
Finland-headed Neste Oyj, a leading producer of renewable diesel and sustainable aviation fuel (SAF) produced from waste and residue raw materials, has announced that it will invest around EUR 190 million to modify its existing renewable production capacity at its biorefinery in Rotterdam, the Netherlands, to enable the production of SAF.
Currently, the 800 000 tonnes per annum Rotterdam biorefinery produces mainly Neste MY Renewable Diesel (HVO). With an investment of approximately EUR 190 million, the modifications will enable Neste to optionally produce up to 500 000 tonnes of SAF per annum as part of the existing capacity.
Neste expects the project to be completed in the second half of 2023. This extends Neste’s growing footprint in the Netherlands and demonstrates the shared sustainability ambitions of Neste, the Dutch government, and the Port of Rotterdam in particular.
This SAF investment in Rotterdam is another important step for Neste in the execution of our growth strategy: to become a global leader in renewable and circular solutions. We have made a commitment to support our customers to reduce greenhouse gas emissions by at least up to 20 million tonnes by 2030. And as the aviation industry is likely to resume on a growth trajectory 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 considerable potential, said Peter Vanacker, President, and CEO at Neste.
Together with the company’s ongoing Singapore biorefinery expansion, Neste will have the capacity to produce 1.5 million tonnes of sustainable aviation fuel annually by the end of 2023, which represents a 15-fold increase on its current 100 000 tonnes per annum SAF production capacity.
Aviation is at a turning point towards a more sustainable future. This extension of our SAF production capacity will support the aviation industry’s efforts to reduce its greenhouse gas emissions and the climate impact in the coming years. We are pleased that we will be ready to meet the growing demand of SAF, also driven by the European Union’s climate ambitions which will shortly be translated into a proposal for binding legislation across Europe, not least because of the Netherlands’ leading role in this matter. Using SAF gives an immediate reduction of greenhouse gas emissions. It also reduces non-CO2 impacts, which are a large part of the total climate effects of aviation emissions. And it is already available today, said Thorsten Lange, EVP Renewable Aviation at Neste.
Additionally, as previously announced, Neste aims at creating readiness for a final investment decision by the Board of Directors for a new world-scale renewable products biorefinery project in Rotterdam towards the end of 2021 or early 2022.