Neste investing EUR 1.4 billion in Singapore biorefinery capacity expansion
Finland-headed oil refiner and renewable fuels producer Neste Oyj has decided that it will go ahead with previously announced plans to increase renewable product production capacity at its Singapore biorefinery. Worth approximately EUR 1.4 billion, the investment will extend Neste’s renewable product overall annual capacity in Singapore by up to 1.3 million tonnes, bringing the total renewable product production capacity for the company close to 4.5 million tonnes annually in 2022.
In December 2017, Neste revealed that it had selected its Singapore biorefinery for a potential capacity investment. According to a statement, the company has now decided to go ahead with the investment with the decision being based on a “growing global market demand” for low-carbon solutions in transport and cities, aviation, polymers and chemicals.
The investment worth approximately EUR 1.4 billion will extend Neste’s renewable product overall capacity in Singapore by up to 1.3 million tonnes per annum, bringing the total renewable product production capacity close to 4.5 million tonnes annually in 2022. The company’s target is to start up the new production line during the first half of 2022.
Neste is in the business of helping transport and cities, aviation, polymers and chemicals customers make their business more sustainable and will continue to lead the way for renewable products. We are already a global leader in renewable products produced from waste and residues. This investment marks an important step in the execution of our profitable growth strategy globally, said Peter Vanacker, President, and CEO of Neste.
As a result of the investment, Neste will have more options to choose between different product solutions in the whole production system. In addition to producing renewable diesel, all Neste’s renewable product refineries are able to produce renewable aviation fuel and raw materials for various polymers and chemicals materials.
The investment in Singapore will include additional logistics capabilities and enhanced raw material pretreatment for the use of increasingly low-quality waste and residue raw materials also for the existing refinery.
The investment will strengthen our competitive advantages which are based on the global optimization of our production and waste and residue raw material usage. With our proprietary NEXBTL technology, renewable products can be refined flexibly from a wide variety of lower quality waste and residues while the end-products retain their high quality. We will leverage the experience gained at our existing sites in Singapore, Rotterdam, the Netherlands and Porvoo, Finland, and thanks to our continuous process and technology development, the new production line will be the best in class worldwide, Vanacker said.
Neste currently has a renewable products production capacity of 2.7 million 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. Before the new production line in Singapore, the company will continue eliminating bottlenecks in the existing production, bringing the existing capacity to 3 million tonnes by 2020.