€258m invstment to increase raw material pretreatment capacity for renewable products, including SAFs
Neste, the producer of renewable diesel and sustainable aviation fuel, is to acquire Bunge Loders Croklaan’s refinery plant in Rotterdam for €258m.
The refinery plant is located next to Neste’s existing biorefinery and it consists of a pretreatment facility, tank farm, jetties and has a pipeline connection to Neste’s site.
The closing of the transaction is subject to the fulfillment of customary closing conditions and regulatory approval. The transition will be implemented in phases with the refinery plant’s full pretreatment capacity available for processing Neste’s feedstock by the end of 2024.
Neste’s President and CEO, Peter Vanacker, said: “The acquisition of the refinery plant supports our global growth strategy in renewables. It allows us to accelerate the scaling up of our renewable raw material pretreatment capacity, which is an important driver for expanding the use of waste and residue feedstocks and increasing our feedstock flexibility.
“We are committed to increasing the share of waste and residues in our renewables feedstock mix to 100% by 2025 and to grow our production platform to enable over 20 million tons of greenhouse gas reductions for our customers by 2030.”
To meet the growing demand of renewable diesel, sustainable aviation fuel and feedstock for chemicals, Neste focuses on building a global feedstock and production platform for renewables.
Neste will expand its renewables annual production capacity from 3.2m to 4.5m tons by the first quarter of 2023, of which the Singapore facility expansion will provide 1.3m tons.
The now acquired refinery offers further pretreatment capacity and terminal infrastructure to handle the increasingly complex waste and residue feedstocks, and supports further growth in production capacity beyond 2023.
