KUALA LUMPUR, March 12 Neste Oil NES1V.HE
could buy 2.4 million to 2.5 million tonnes of vegetable oils
for four biofuel plants, putting the Finnish refiner on par
with consumer goods giant Unilever (UNc.AS) (ULVR.L) as a top
vegetable oil buyer.
The bulk of Neste Oil's vegetable oil purchases will come
from palm oil, currently the cheapest in the world.
Here are some facts about Neste Oil and its growing palm
oil use. For a related story, see [ID:nSGE62B028]
* Neste Oil has developed biofuel technology that allows
flexible use of any vegetable oil or animal fat for producing
its NExBTL fuel. The fuel does not need to be blended with
fossil diesel and can be used as it is for the transport
* Palm oil will make up the bulk of the refiner's
feedstock. Analysts say this may narrow palm oil's discount to
soyoil below $100 a tonne. [ID:nSGE6280AT]
* In Finland, Neste Oil has two plants producing NExBTL,
which has been marketed as the world's cleanest fuel. The
combined capacity of the factories stand at 350,000 tonnes.
* Neste Oil has invested a combined 1.22 billion euros to
build one biofuel plant in Singapore and another in Rotterdam
that each have a capacity of 800,000 tonnes. The Singapore
plant will be completed in 2010 and the Rotterdam factory in
* The firm is part of the Roundtable on Sustainable Palm
Oil (RSPO) -- a grouping of planters and consumers who have
developed a certification system that includes commitments to
preserve wildlife and forests when expanding estates.
* Neste Oil, which has committed to use only certified palm
oil by end-2015, will still make its own greenhouse gas
assessments on crude palm oil sourced through the RSPO. For
related story: [ID:nKLR457329]
* The Finnish refiner now applies the segregation method to
its supply chain system that allows for the mixing of certified
green palm oil with those produced by non-RSPO plantations.
* It may go over to mass-balancing its supply chain, which
means Neste Oil will administer the mixing of these two type of
palm oil available so that they know the conditions and the
farming methods of their suppliers.
* Neste Oil dropped to an underlying operating loss in the
fourth quarter due to weak margins and said it expected 2010 to
be challenging. [ID:nLDE6130GI]
(Source: Reuters, Neste Oil)
(Compiled by Niluksi Koswanage; Editing by Clarence