Finland-based Neste will invest around €1.4bn in a new production line in Singapore to boost its renewable products production capacity in the region by an additional 1.3 million tons per annum.
Neste said that it has reached a final investment decision in this connection based on the increasing demand for low-carbon solutions in transport and cities, aviation, chemicals and polymers across the world.
Through the investment, the Finnish oil refining and marketing company expects to take its total renewable product capacity to about 4.5 million tons per year in 2022. The company is targeting to commission the new production line in the first half of 2022.
Currently, Neste’s renewable products production capacity around the world is 2.7 million tons per annum. Out of this, one million tons is produced in Singapore, the same amount is produced in Rotterdam, Netherlands while the remaining is produced in Porvoo, Finland.
The new production line in Singapore is expected to give the Finnish firm more options to pick from various product solutions in the whole production system. Apart from producing renewable diesel, all the company’s renewable product refineries are able to produce renewable aviation fuel and raw materials for different polymers and chemicals materials.
Also through the investment, Neste expects to see additional logistics capabilities and improved raw material pretreatment.
Neste president and CEO Peter Vanacker said: “The investment will strengthen our competitive advantages which are based on the global optimization of our production and waste and residue raw material usage.
“With our proprietary NEXBTL technology, renewable products can be refined flexibly from a wide variety of lower quality waste and residues while the end-products retain their high quality.
“We will leverage the experience gained at our existing sites in Singapore, Rotterdam, the Netherlands and Porvoo, Finland, and thanks to our continuous process and technology development, the new production line will be the best in class worldwide.”
The Finnish firm said that prior to the commissioning of the new production line in Singapore it will continue to remove bottlenecks in its existing production to increase its existing capacity to three million tons by 2020.