Neste sets new strategic climate targets to reduce own and clients’ emissions
As part of its renewed strategy, Finland-headed oil refiner and renewable fuel producer Neste Oyj has introduced two new "ambitious" climate targets: (i) reduce clients’ greenhouse gas (GHG) emissions with its renewable and circular solutions by at least 20 million tonnes carbon dioxide equivalents (CO2eq) annually by 2030, (ii) reduce the carbon footprint of Neste’s production ahead of EU’s climate and energy targets.
According to a statement, Neste has over the last decade focused on producing renewable fuels to replace fossil fuel use. In 2018, Neste’s renewable products helped its customers to reduce greenhouse gas (GHG) emissions by 7.9 million tonnes of carbon dioxide equivalents (Mt CO2eq). Using World Bank figures, this is equal to the combined annual carbon footprint of 1.2 million average EU citizens.
As part of its renewed strategy, Neste says it is now committed to helping its customers reduce GHG emissions by at least 20 Mt CO2eq annually by 2030. This reduction corresponds to the combined annual carbon footprint of over 3 million average EU citizens.
Our flagship product Neste MY Renewable Diesel will continue to help reduce transport-related emissions, while we are starting to make a significant positive climate impact in aviation with Neste MY Renewable Jet Fuel. Our renewable and circular plastics solutions will, in turn, help polymers and the plastics consuming industries reduce their crude oil dependence and climate impact. All of these will directly and significantly contribute to reducing fossil-based greenhouse gas emissions globally in the upcoming years, said Peter Vanacker, President, and CEO at Neste.
Reducing the carbon footprint of production while increasing production capacity
In order to expand its renewables offering to new industries and markets, Neste announced in December 2018 that it is investing EUR 1.4 billion to increase its renewable products production capacity in Singapore. This brings the company’s total renewable product capacity close to 4.5 million tonnes annually in 2022 from the current 2.9 million tonnes.
It also enables Neste to double its GHG reduction impact from the 2018 level.
We are in the business of reducing emissions and accelerating circularity in society. Although we aim to be faster and bolder in developing our business, we will not push for production capacity growth without keeping a close eye on the direct climate impact of our refining. We aim to utilize the best available technology to keep our emissions in control when we deploy our new capacity, Vanacker said.
Combined with Neste’s ambition to expand its production capacity even further in the long term, and its aims to introduce chemically recycled, liquefied plastic waste as a raw material for fuels, chemicals and new plastics in the upcoming decade, the company believes its ambitious emission reduction target can be reached.
Furthermore, we are currently evaluating our existing production facilities and identifying the most efficient ways to reduce our carbon footprint ahead of the EU’s climate and energy targets. Although we are very much still in a planning phase, we know we will continue focusing on energy efficiency. The new combined heat and power plant scheduled for commissioning in 2019 in Porvoo will naturally contribute. While we are still working on a more detailed plan, our strategic direction is clear, ended Peter Vanacker.