COMPANY DESCRIPTION:
Neste Oil is a refining and marketing company, with a productionfocus on premium-quality, lower-emission traffic fuels. The company produces a comprehensive range of major petroleum products and is
the world's leading supplier of renewable diesel. The company has
operations in 15 countries. Its growth strategy is focused on
producing premium- quality renewable diesel fuel. The company had
net sales of EUR 11.9 billion in 2010 and employs around 5,000 people.
ADDRESS
Keilaranta P.O. Box 95
YEAR FOUNDED
Established in 1948
ANNUAL REVENUES
Around EUR 11.9 billion in 2010
MAJOR INVESTORS
Neste Oil's share is listed on the NASDAQ OMX Helsinki with the symbol NES1V. It trades as NEF on German Exchanges, and NTOIF on the US Pink Sheets. The company's
biggest shareholder is the Prime Minister's office.
TYPE OF TECHNOLOGY(IES)
Neste Oil has developed a premium quality NExBTL renewable diesel
production technology which allows flexible use of any vegetable or waste oil in the production of premium-quality renewable diesel and aviation fuel. Based on its technical qualities, NExBTL diesel is
one of the best diesel fuels in the world. NExBTL is produced by
hydrotreating vegetable or waste oils. As a hydrocarbon it
corresponds to the chemical composition of traditional diesel.
Neste Oil's major investment projects are linked to increasing the
company's NExBTL renewable diesel capacity. In 2011, Neste Oil
started up the Europe's largest renewable diesel plant in Rotterdam.
The plant has a capacity of 800,000 t/a. Neste Oil already operates a renewable diesel plant in Singapore that came on stream in 2010
and two plants in Porvoo in Finland that came on stream in 2007 and
2009. All Neste Oil's NExBTL plants are capable of producing both
NExBTL renewable diesel and NExBTL renewable aviation fuel.
With the Rotterdam start-up, Neste Oil's major EUR1.5 billion
investment program aimed at increasing the renewable diesel capacity and the company is very well placed to meet world's growing energy
needs and demand for cleaner, sustainable bio-based fuels.
FEEDSTOCKS:
Neste Oil's NExBTL renewable diesel production technology allows
flexible use of any vegetable or waste oil in the production of
premium-quality renewable diesel without compromising on quality.
At the moment, Neste Oil produces NExBTL renewable diesel from a mix of palm oil, stearin and palm oil fatty acid distillate (PFAD) which are by- products of palm oil production, rapeseed oil, jatropha oil, camelina oil, soybean oil as well as waste animal fat produced by
the food processing industry.
Widening the raw material base is one of the company's main future
goals. About 80% of the company's R&D costs totaling
approximately 40 million euros annually are directed to researching renewable raw materials. Progress continues to be made and in 2011
Neste Oil expanded the raw material feedstock with jatropha oil,
camelina oil and soybean oil. In addition, research has shown that
algae oil and microbial oil, together with wax derived from
wood-based biomass, can all be used as feedstocks for producing
NExBTL renewable diesel.
Notable successes in this area include:patented a waste-based
microbial oil technologyprogressed with research on algae oil and
produced an initial trial batchachieved good results at our pilot
plant in producing biowax from wood- based biomass and started
environmental impact assessments for a possible commercial
plantpartnered with the world's leading research institutes,
companies and
universities to find ways to produce renewable raw materials on
industrial scale
PRODUCTS
NExBTL renewable Diesel
Based on Neste Oil's proprietary technology, premium-quality NExBTL renewable diesel is the most advanced diesel fuel on the market
today. It easily outperforms both conventional biodiesel and fossil diesel, and can be produced from a flexible mix of vegetable oils
and waste animal fat sourced from the food industry. Neste Oil's
procurement chain ensures that all the raw materials it uses for
NExBTL are produced responsibly. NExBTL renewable diesel has been
shown to reduce greenhouse gas emissions by over 40% over the
product's entire life cycle when compared to fossil diesel. Its
lower tailpipe emissions also make a valuable contribution to
enhancing overall air quality.
NExBTL renewable aviation fuelNeste Oil is a global pioneer in
aviation biofuels. The company's NExBTL renewable aviation fuel
meets the very stringent quality standards demanded of aircraft fuel and can be produced in industrial quantities. Production of Neste
Oil's renewable aviation fuel is based on the company's NExBTL
technology.
NExBTL renewable aviation fuel can significantly reduce an
aircraft's greenhouse gas emissions compared to fossil fuel. In
addition to a smaller carbon footprint, it also offers lower
emissions of other pollutants such as NOx. Neste Oil's NExBTL
renewable aviation fuel is a pure hydrocarbon comparable to
fossil-based aviation fuel. NExBTL renewable aviation fuel is fully compatible with all current aircraft engines and no aircraft-related investments or modifications are needed before it can be used.
PAST MILESTONES
1. Compared to fossil diesel, NExBTL reduces greenhouse gas
emissions by over 40% over its entire lifecycle. NExBTL is currently being sold to consumers in Finland and to other oil companies in
Europe and North America to be used as a premium quality
biocomponent. It can be used in blends in any concentration, i.e.
0-100% of the content. The company started up three plants in
Finland, Singapore and Rotterdam and increased its total production capacity to 2.0 million t/a.
2. Lufthansa started commercial flights powered by Neste Oil's
NExBTL renewable aviation fuel in summer 2011. This was the first
time that renewable fuel is used in regular commercial airline
service. Neste Oil is currently one of the only companies in the
world capable of producing renewable aviation fuel at commercial
scale.
3. Neste Oil is committed to using sustainably produced bio-based
raw materials. The company has developed its own sustainability
verification system which exceeds the industry standards for
renewable raw material procurement and meets the requirements of
legislation. The commitment to expanding the raw materials
portfoliio has meant Neste Oil has successfully widened its raw
material base to produce NExBTL renewable diesel. About 80% of the
company's R&D costs totaling approximately 40 million euros
annually are directed to researching renewable raw materials.
New raw materials, such as jatropha, camelina and soybean oils have been introduced. In addition, research has shown that algae oil and microbial oil, together with wax derived from wood-based biomass,
can all be used as feedstocks for producing NExBTL renewable diesel.
Neste Oil's work on sustainability has received recognition in
numerous international comparisons for many years in succession
(e.g. Dow Jones Sustainability Index, Global 100 list, Forest
footprint disclosure).
FUTURE MILESTONES
1. Generate profitable growth in the renewable fuels market by
developing global customer base and supply chain, expanding the
feedstock base, ensuring smooth operation of the new production
plants and taking part in developing and planning new legislation.
2. Continue researching and introducing new raw materials. When
selecting its inputs, Neste Oil prioritises suppliers that follow
sustainable cultivation and production practices and have a good
greenhouse gas balance. The final deployment decision is also
affected by raw material availability and consistency of supply, as well as price.
3. Develop new applications, such as NExBTL renewable aviation fuel, that help customers to reduce greenhouse gas emissions and
dependence on fossil fuels.
BUSINESS MODEL:
Neste Oil is a refining and marketing company, that produces
renewable fuels based on its proprietary NExBTL technology. The
company owns and operates four production plants producing NExBTL
renewable diesel. The output of the plants is sold to other oil
companies in European and Northern American markets to be used as a premium quality bio- component.
COMPETITIVE EDGE(S):
Neste Oil's strategy is founded on its unique ability to refine
premium- quality fuels from a wide range of different,
cost-effective feedstocks. Specialisation and in-depth expertise are central to enabling Neste Oil to
succeed in the international marketplace, despite its small relative size.
Neste Oil's strengths in renewable fuels business include:
cutting-edge NExBTL technology and product, growing production
capacity, and industry-leading operations based on sustainable raw
material procurement. Additionally, Neste Oil's expertise in
research and technology is one of the company's key success factors.
RESEARCH, OR MANUFACTURING PARTNERSHIPS OR ALLIANCES.
NExBTL renewable diesel, for example, is the outcome of an intensive R&D effort.
