Neste Continues Projects for Renewable Fuel and Cleaner Oil

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Researched by Industrial Info Resources (Sugar Land, Texas)--Following a decision to build a renewables-fed diesel plant in Singapore at the end of 2007, Neste Oil (OTC:NTOIF) (Espoo, Finland) has announced that it will build an 800,000-ton-per-year renewable diesel plant in Rotterdam, The Netherlands. Work has begun on the $1 billion project, using Neste's NExBTL renewable diesel proprietary technology. Completion is scheduled for 2011.

Neste will work with the same partners in Rotterdam as it has for the Singapore project. Technip Italy (OTC:TKPPY) (Rome, Italy) will act as the project's main contractor and Air Liquide (OTC:AIQUY) (Paris) will supply the hydrogen feed for the process. The location of the plant in the Maasvlakten area of western Rotterdam will benefit from port facilities and adjacent chemical plants, including utilities suppliers. For related information, see December 5, 2007, article - Finnish Firm's $800 Million Biodiesel Plant Boosts Singapore's Renewables Profile.

Compared with the use of fossil fuels, NExBTL offers 40%-60% lower greenhouse gas emissions over its entire life cycle, reducing tailpipe emissions and contributing to better air quality. Neste's Finnish plant can use a wide range of raw feeds and currently uses a mix of palm oil, rapeseed oil and animal fat to produce a fuel that can be used in all diesel engines.

In a major research and development program, Neste is developing raw material feeds and is working toward a target of completely non-food raw-material use by 2020. The company is cooperating with more than 20 universities and research institutions worldwide on the program, which is divided into six areas, including the use non-food vegetable oil, wood-based materials and algae for fuel production.

In another project that will meet increasingly stringent environmental standards, Neste (45%), Bahrain's state-owned Oil & Gas Holding Company (27.5%) and the Bahrain Petroleum Company (Bapco) (27.5%) is forming a joint venture, the Bahrain Base Oil Company, to build a high-quality lubricant base-oil plant in Bahrain.

The plant will have an annual capacity of 400,000 tons of very high viscosity index (VI) base oil for use in blending top-tier lubricants and will be one of the world's largest very high VI-lubricant-producing plants when it goes into production at the end of 2011. The project will take a total investment of $360 million to $465 million, which will be shared by the partners in proportion to their shareholdings.

Bapco's hydrocracker unit, commissioned in 2007, will provide a feed for the project. Neste will be responsible for the sales and marketing of output, and Bapco will provide operations, maintenance and management services.

Kimmo Rahkamo, Neste's Executive Vice President for specialty products, said, "Demand for these sulfur-free base oils is increasing globally, thanks to their ability to meet current and future performance requirements as well as more stringent environmental standards."

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