Neste Oil Singapore Awards EPC Contract for Diesel Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Neste Oil Singapore Private Limited, a unit of Neste Oil (OTC:NTOIF) (Espoo, Finland), has awarded an engineering, procurement and construction management contract for the Tuas Power Scope Project to Jacobs Engineering Group Incorporated (NYSE:JEC) (Pasadena, California). The project will support the renewable NExBTL diesel plant being set up in Singapore by Neste Renewable Fuels Limited. The project will deliver multiutilities from the power plant to the diesel plant. The value of the contract has not been disclosed.

Jacobs Engineering Singapore will execute the contract. The project's preliminary design package and control estimate have also been developed by Jacobs. As part of another contract, Jacobs has been retained to provide the detailed design services for the offplots portion and permit scope for the overall facility.

The diesel plant, which will cost about $744 million to set up, is being designed to produce 800,000 tons per year of NExBTL diesel. The plant is scheduled to be commissioned in 2010. The plant will use Neste's proprietary technology and is scheduled to become one of the largest "new generation" renewable diesel manufacturing plants in the world. A vegetable-oil-refining process, patented by Neste, is used to produce NExBTL diesel. According to Neste's calculations, the use of NExBTL cuts carbon dioxide emissions by 40% to 60%.

The power station, owned by Tuas Power (Singapore), is located in Tuas South near Neste's upcoming diesel facility. The power station is under construction and is also expected to be complete by 2010. The utility supplies will include cooling water, steam, loading and storage services, waste treatment facilities and harbor facilities for the use of the NExBTL diesel plant. In addition to using its current infrastructure, Tuas Power will invest $100 million to modify its facilities and add new infrastructure, including pipelines and a jetty to meet the demands of the diesel plant. For related information, see June 19, 2008, news article - Neste Continues Projects for Renewable Fuel and Cleaner Oil.

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