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Sustainable Aviation Fuel

Neste celebrates opening of Singapore Expansion

Neste celebrates opening of Singapore Expansion
Matti Lehmus (left) President and CEO of Neste, and Minister Gan Kim Yong, Minister for Trade and Industry at the Singapore Opening Ceremony held on May 17, 2023 (photo courtesy Neste).

Finland-headed oil refiner and renewable products major Neste Oyj has held the official opening of its Singapore biorefinery expansion marking the full completion and start-up of the EUR 1.6 billion project. The Singapore Expansion doubles Neste’s production capacity in Singapore and brings the refinery’s total capacity to 2.6 million tonnes annually of which up to one million tonnes can be sustainable aviation fuel (SAF).

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Neste announced its final investment decision (FID) on additional renewable product production capacity in Singapore in December 2018.

The EUR 1.6 billion Singapore Expansion project has been successfully completed, and the start-up of the refinery expansion was completed in mid-April.

We celebrate today our Singapore refinery expansion opening with our customers, partners, and employees. This marks another important milestone in our renewables growth strategy execution. The completion of the construction of the refinery is a remarkable achievement given the complexity of the project and as it was carried out during a global pandemic. I want to express my sincere and warmest thanks to all our partners and employees who have been part of this project, said Matti Lehmus, President and CEO of Neste in his address.

Up to 1 million tpa of SAF

The Singapore Expansion doubles Neste’s production capacity in Singapore and brings the biorefinery’s total capacity to 2.6 million tonnes per annum of which up to one million tonnes can be sustainable aviation fuel (SAF).

This strengthens Neste’s position as the world’s leading SAF producer.

In addition to increased production capacity, the enhanced raw material pre-treatment capacity onsite increases Neste’s capability to process more challenging waste and residue raw materials.

Singapore has world-class logistics connectivity enabling efficient transportation of renewable raw materials as well as final products globally. Also, its world-class education supports the availability of future talents to be a part of our production and commercial operations, as well as to enhance our R&D in our recently established Innovation Center, Matti Lehmus said.

Integrated supply to Singapore Changi Airport

Neste is committed to supporting the aviation industry globally in achieving the goal of net-zero emissions by 2050, and “is pleased to support” Singapore in achieving its ambitious emission reduction targets as part of the Green Plan 2030 and Sustainable Air Hub Blueprint under preparation for completion later in 2023.

Singapore is a leading aviation hub in the Asia-Pacific region. In addition to being a global hub for Neste’s SAF production, we have established an integrated SAF supply chain to Singapore Changi Airport to make our product available to an increasing number of regional and international airlines. The neat SAF is produced at our refinery located in the Tuas area of Singapore, then blended together with conventional fossil jet fuel and certified to meet jet fuel specifications at the blending terminal in Singapore, and finally delivered to our customers at Changi Airport, said Sami Jauhiainen, acting EVP for the Renewable Aviation business unit of Neste.

An aerial view of Neste’s Singapore Biorefinery (photo courtesy Neste).

Stake in Changi Airport fuel infrastructure

In order to be able to offer blended “Neste MY Sustainable Aviation Fuel” directly to airlines at Singapore Changi Airport (SIN), Neste has agreed to acquire a stake and become a minority shareholder in Changi Airport Fuel Hydrant Installation Company Pte Ltd (CAFHI), the fuel storage and infrastructure joint venture in the airport.

The transaction is subject to the fulfillment of customary closing conditions.

To support its aviation customers across the globe in achieving their climate targets by reducing their emissions with SAF, Neste is also developing a global network of airports where it has the capability to supply SAF directly into aircraft.

A Neste MY Sustainable Aviation Fuel (SAF) truck.

Singapore’s Changi Airport (SIN) extends this network of airports, which includes San Francisco (SFO) and Los Angeles (LAX) in the United States (US), Amsterdam (AMS) in the Netherlands, and Helsinki Airport (HEL) in Finland.

The company is also supplying SAF to various fuel marketing companies, broadening its availability outside its own airport network.

Neste’s total SAF production capability will be 1.5 million tonnes per annum by the end of 2023 when the modifications at Neste’s Rotterdam refinery in the Netherlands are completed, and 2.2 million tonnes when the expansion of the Rotterdam refinery is completed by the first half of 2026.

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