Neste to acquire Bunge Loders Croklaan's plant in the Port of Rotterdam
Finland-headed Neste Oyj, the world's leading producer of renewable diesel and sustainable aviation fuel (SAF) produced from waste and residue raw materials, has agreed to acquire Bunge Loders Croklaan's oilseeds refinery plant located in the Port of Rotterdam, the Netherlands for a purchase price of EUR 258 million. The refinery plant is located next to Neste’s existing biorefinery and it consists of a pretreatment facility, tank farm, jetties, and has a pipeline connection to Neste’s site.
The closing of the transaction is subject to the fulfillment of customary closing conditions and regulatory approval. The transition will be implemented in phases with the oilseed refinery plant’s full pretreatment capacity available for processing Neste’s feedstock by the end of 2024.
The acquisition of the refinery plant supports our global growth strategy in renewables. It allows us to accelerate the scaling up of our renewable raw material pretreatment capacity, which is an important driver for expanding the use of waste and residue feedstocks and increasing our feedstock flexibility. We are committed to increasing the share of waste and residues in our renewables feedstock mix to 100 percent by 2025 and to grow our production platform to enable over 20 million tonnes of greenhouse gas reductions for our customers by 2030, said Neste’s President and CEO Peter Vanacker.
Expanding renewable capacity to meet demand
To meet the growing demand for renewable diesel, sustainable aviation fuel (SAF), and feedstock for chemicals, Neste focuses on building a global feedstock and production platform for renewables.
Neste will expand its renewables annual production capacity from 3.2 to 4.5 million tonnes by the first quarter of 2023, of which the Singapore facility expansion will provide 1.3 million tonnes.
The now acquired refinery offers further pretreatment capacity and terminal infrastructure to handle the increasingly complex waste and residue feedstocks, and supports further growth in production capacity beyond 2023.
Well-positioned in the Netherlands
Neste has been active in the Netherlands since 2011 when the Rotterdam facility for renewable products started its operations. The Rotterdam facility, together with the company’s Singapore biorefinery, are the world’s biggest and most advanced renewable fuel refineries.
Earlier in 2020, Neste also acquired a terminal in Rotterdam for storing, refining, and blending renewable waste and residue-based raw materials.
In 2019, Neste opened a new office in Hoofddorp, in greater Amsterdam which serves as the global hub for the growing Renewable Aviation business. Neste MY Renewable Diesel, produced from renewable raw materials is currently available at more than 100 sales points throughout the country.