Finland. Neste Oil Corporation
| Date of agreement: | 28 Mar 2011 |
|---|---|
| Country: | Finland |
| Customer: | Neste Oil Corporation |
| Amount in EUR: | EUR 50 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Manufacture of refined petroleum products |
This loan contributes to climate change mitigation: 100%
Project
The 10-year-maturity loan totalling EUR 50 million has been provided for investments into an R&D projects aimed at extending the range of raw materials for the production of bio-fuel. Neste Oil is researching especially a variety of non-food raw materials and entirely new raw materials capable of reducing greenhouse gas emissions significantly.
Research is being carried out with a network of international universities, research centres and companies around the world. Currently, Neste Oil produces NExBTL diesel (Next Generation Biomass To Liquid) from a mix of palm oil, stearin, and palm oil fatty acid distillate (PFAD), rapeseed oil as well as waste animal fat produced by the food processing industry. At the moment palm oil is the most widely used raw material for NExBTL. The use of palm oil in fuel production has prompted public criticism connected to the degradation of natural resources in the palm oil exporting countries.
Established in 1948, Neste Oil is today an oil refining and marketing company, focusing on high quality traffic fuels and other highly developed oil products with reduced environmental impact.
Fulfilment of NIB's mandate
Neste Oil’s R&D efforts are aimed at extending the feedstock base of the NExBTL renewable diesel. The renewable diesel developed and produced by Neste Oil reduces both CO2 and exhaust emissions. The fuel is based on unique technology developed by Neste Oil, which gives the product superior properties compared to competing products. The growth in demand for biofuels is supported by mandated renewable content in the EU countries, for instance.
Sustainability summary
Neste Oil’s goal with the proposed R&D activities is to develop technologies for commercial-scale plants, alternatives to the existing bio- diesel feedstock and improve the company’s analytical capabilities. The European Union’s sustainability criteria in the Renewable Energy Directive are considered in the evaluation of the new raw materials. Neste Oil’s operations are certified in accordance with the environmental management system ISO 14001.