Neste Oil to expand biodiesel investments

Sept. 28, 2006
Neste Oil's board approved a strategy intended to make the Finland refiner the world's largest biodiesel producer.

By OGJ editors
HOUSTON, Sept. 28 -- Neste Oil's board approved a strategy intended to make the Finland refiner the world's largest biodiesel producer.

Refining remains Neste's core business, and the company will continue investing in new conversion capacity at its refineries. No specific investment figure was given.

Neste Pres. and Chief Executive Officer Risto Rinne said the company plans to produce "millions of tons annually" of biodiesel from vegetable oils and animal fats.

"We will build several biodiesel production facilities in various market areas, either alone or with partners," Rinne said. "We will be even more active in research and development in the biofuels area."

Current diesel fuel production capacity at Neste's Porvoo refinery is 4 million tonnes/year. The company is building a 170,000-tonne/year biodiesel plant there.

Neste's biofuel production is expected to begin in summer 2007 at the �100 million biodiesel plant (OGJ, Sept. 25, 2006, Newsletter).

The European Union has challenged member nations to increase renewable biofuel usage to 5.75% of all gasoline and diesel fuels by 2010.