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Neste settles on Singapore for planned capacity expansion

The Board of Directors of Finland-headed renewable fuels and oil refiner Neste have decided that Neste's additional production capacity for renewable diesel, renewable aviation fuel and raw materials for various biochemical uses will be located in Singapore. The decision initiates technical design of the new production line, with the aim of a final investment decision by the end of 2018. If the project proceeds as planned, production at the new production line will begin by 2022.

Earlier this year, Neste revealed that it was “evaluating the feasibility” of options to invest in new production capacity. The options under review include locations in the US and Singapore. The Board has now decided for the latter location.

“There were two equally good locations for the refinery, the United States and Singapore. We investigated the strengths of both potential operating environments, and also revisited our outlooks for raw materials and demand. Based on this overall assessment, we settled on Singapore” said Kaisa Hietala, head of Neste’s Renewable Products business, here seen addressing delegates at the Argus Biofuels 2017 conference held in November in London, UK.

If built, the new production line will almost double Neste’s current capacity in the Singapore refinery by adding one million tonnes of capacity. The growth project includes an enhanced pre-treatment unit in preparation for the use of increasingly poor-quality waste materials.

Neste currently has a renewable diesel production capacity of 2.6 million tonnes. Of this total, over one million is produced in Singapore, the same amount in Rotterdam, the Netherlands and the rest in Porvoo, Finland. By eliminating bottlenecks, this total capacity will be increased to 3 million tonnes by 2020. In addition to producing renewable diesel, the refineries are able to produce renewable aviation fuel and raw materials for various biochemical uses.

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