Neste bets on global green fuel future with bigger Asian plant

Neste Oyj plans to supply renewable diesel and sustainable aviation fuel to regions across the world from its expanded refinery in Singapore, as global green ambitions drive up demand.

The recently completed €1.6 billion ($1.74 billion) expansion has turned the plant into the world’s biggest renewable diesel refinery and largest producer of sustainable aviation fuel, with capacity to make as much as 1 million tons of SAF a year, according to the Finnish company.

Demand for diesel and jet fuel made from biofuels has grown in recent years as governments, particularly in the west, have sought to reduce the carbon footprint of energy consumption. SAF has long been seen as the aviation industry’s best way to reduce emissions, but supply is lagging.

“If you look at today, the demand it has been for renewable diesel, which is the main product mainly in Europe and in North America,” Neste’s Chief Executive Officer Matti Lehmus said during an interview on a visit to Singapore to mark the plant expansion. “We can supply both markets from here.”

Neste has also bought a minority stake in the fuel storage and infrastructure joint venture at the Singapore’s Changi airport to be able to offer blended SAF. There’s been a “lot of interest from Asian airlines,” Lehmus said.

While European countries and the US mandate a certain percentage of biofuels in most transport fuels, there’s been slower uptake in Asia. Singapore is mulling rules to mandate SAF, the Straits Times reported Thursday.

The Singapore plant expansion doubles overall production capacity to 2.6 million tons a year. Neste is continuing to look for new ways of producing cleaner fuels, Lehmus said, including the use of algae, municipal or agricultural waste in its business.