Neste Oil’s renewable diesel plant launch coincides with Biofuels International show

Finland-based Neste Oil laid the foundation stone for Europe’s largest renewable diesel plant last week, coinciding with the second annual Biofuels International expo & conference in the Netherlands.

The Rotterdam plant will have an annual production capacity of 800,000 tonnes. The investment cost of the plant is estimated to be €670 million, and it will create over 100 jobs.

While first generation biodiesel plants are facing market difficulties, Finland-based Neste Oil’s renewable diesel plants are set up for a secure future.

‘Biodiesel investment has been a catastrophe with many plants in bankruptcy,’ Neste Oil’s executive VP Renewable Fuels Jarmo Honkamaa, points out. ‘We have a product that is completely different and has a significant premium price on top of biodiesel prices.’

NExBTL fuel offers significant reductions in both greenhouse gas emissions and pollution compared to fossil diesel fuel – 40-80% less greenhouse gases throughout the whole product lifecycle.

Producing the green fuel is one thing, but the real survival test is in finding buyers. ‘The demand is guaranteed as the European Union is committed towards an agreed bio requirement of 10% by 2020, equating to more than 20 million tonnes. Our plants will generate 2 million tonnes.’

Renewable diesel has significant advantages over biodiesel. The latter has storage and corrosion issues, and can only be blended at 5%, while renewable diesel can be used at 100%.

Neste Oil’s plants are also feedstock flexible. The company can use rapeseed oil, waste animal fat and palm oil. By the end of 2015 Neste plans to use sustainably-sourced palm oil as its sole feedstock.

The producer is investing in a plant in Singapore from finance earnings and cash flow. Mechanical completion is expected at the end of June 2010, with operations expected by the end of Q3 2010.

The company views expansion on the horizon. The infrastructure in Singapore and Rotterdam will enable the installation of a renewable diesel second line, meaning a better investment return.

‘We have also been talking actively about building a plant in the US, as there has been lots of interest from the new administration,’ Honkamaa adds.

The 2nd Biofuels International expo and conference in nearby Amsterdam from 27 to 28 May attracted over 200 delegates and covered topics including future feedstocks, cellulosic ethanol, BTL, storage and handling and improving fuel performance and quality.