All agreed loans

Finland. Neste Oil Oyj

Date of loan: 13 Mar 2007
Country: Finland
Customer: Neste Oil Oyj
Amount in EUR: EUR 40 million
Maturity: 10 years
NACE sector / loan type: Manufacture of refined petroleum products
Business area: Industries and services

Project

The 10-year-maturity loan totalling EUR 40 million is aimed at financing the company's investment in the production of renewable diesel based on vegetable oil or animal fat. The new processing unit will apply Neste Oil's innovative technology resulting in an output with fuel properties fully comparable with traditional fossil diesel fuels. The biodiesel has no sulphur content, while other harmful emissions are clearly below those of fossil diesel fuels. The new product can be used as a blending component in conventional fossil diesel fuels without any modifications to the vehicle engine. The new processing unit's annual capacity is estimated at 170,000 tonnes of renewable diesel. Established in 1948, Neste Oil Oyj is today an oil refining and marketing company, focusing on high quality traffic fuels and other highly developed oil products with reduced environmental impact.

Sustainability summary

Neste Oil's renewable NExBTL (Next Generation Biomass To Liquid) diesel processing unit will apply Neste Oil's innovative technology. The use of NExBTL renewable diesel compared to fossil-based diesel will decrease CO2 emissions by 40-60% as well as tailpipe emissions. The plant will utilise the existing infrastructure and construct a range of new facilities, such as a harbour jetty, feeding tanks, production tanks, degumming units, and pipelines. Since palm oil is a possible raw material for NExBTL, the company only negotiates with potential suppliers committed to the Roundtable on Sustainable Palm Oil, which in late 2007 established a certification system on the basis of environmental, social and economic sustainability criteria. Neste Oil is committed to using exclusively RSPO-certified palm oil as soon as it becomes available. 100% of the project qualifies as an environmental investment.