Nest Egg + Renewables Help Protect Neste in 2020 – Even with COVID-19 Uncertainty, Neste Hits Renewables Production Record
by Jim Lane (Biofuels Digest) … In today’s Digest, Vanacker answers how the COVID-19 pandemic is affecting Neste’s operations at the moment, his outlook for renewable fuels, whether fighting climate change is still on Neste’s agenda, an exclusive Digest interview with Jason Blake from Neste’s Aviation Feedstock Business Unit, and more.
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” … In addition, our Renewable Products’ sales volumes were high, and our renewables facilities reached a new quarterly production record. This is an excellent example of the passion our people put into their work, something which continuously keeps astonishing me.”
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How do you see the outlook for renewable fuels?
“None of us has a crystal ball but we are likely to see unprecedented volatility in the fuel market. As a consequence, we anticipate a challenging market environment in the oil products business. We may also see a very tight renewable feedstock supply, but remain confident in the renewable fuels markets. We expect biofuel regulations and mandates to continue supporting renewable diesel demand. Many governments and companies are highly committed to reducing transportation-related emissions.”
“Our strategy for sustainable aviation fuels has not changed, either. We are committed to serving airlines in their emission reduction targets as soon as aviation recovers. We are well positioned to meet the increasing demand with our current 100 kta available capacity, and our Singapore renewables production capacity expansion. We are currently also investing in a feasibility study to enable the production of renewable aviation fuel in Rotterdam. We target to have the full capacity to produce over 1 million tonnes of renewable jet fuel globally by the end of 2022.”
How do you see the future, is fighting climate change still on your agenda?
“While it is important to tackle the coronavirus, we also need to look for ways to help rebuild the world after the pandemic. The climate crisis is still happening and needs to be addressed.”
“We now have a golden opportunity to build a sustainable and resilient economy and society. Investments in climate-resilient infrastructure, green innovation and generally the transition to a low-emission future can drive short-term job creation and economic recovery. It should be stressed that this work requires global collaboration. To start with, we have joined an alliance of cross-party political decision-makers, businesses, NGOs and other stakeholders in a call for a Green Recovery after the coronavirus crisis in Europe. We believe that the efforts devoted to the economic recovery after this pandemic must pass the test of creating a healthier planet. The climate crisis will not disappear, as the COVID-19 crisis will, one day.”
What about Sustainable Aviation Fuels?
With the aviation industry reeling and recovering from ‘Rona Cyclona, sustainable aviation fuel is still promising, according to Jason Blake, Vice President of Innovation at Neste’s Aviation Feedstock Business Platform (you may know him formerly from Novozymes). In an exclusive Digest interview, Blake shared some details about Neste’s aviation fuels and aviation feedstock groups.
Neste’s aviation fuels group focuses on the commercial business, contracts with airlines and strategy on how to deploy current aviation fuels into the marketplace, but the aviation feedstock groups focuses on R&D for new feedstocks and improving current feedstocks, investigates new platforms for oils, looking for interesting new renewable jetfuel value chains and securing feedstocks for aviation fuel to have commercial volumes for airlines – to sum it up, the innovation side of things. This group looks at a 5-10 year down the road supply.
Blake told The Digest there are two feedstocks that look very promising right now globally – algae-based technologies and municipal solid waste. If you look at Vanacker’s Capital Markets Day presentation from last week, you’ll see that those two feedstocks are highlighted, so stay tuned for more news from Neste on those in the future.
Neste’s U.S. website notes that “In the US and Europe, Neste’s sustainable aviation fuel annual capacity is currently 100,000 tons. With the Singapore refinery expansion on the way, Neste will have the capacity to produce over 1 million tonnes of sustainable aviation fuel by 2022.”
The website also notes that “Neste MY Renewable Jet Fuel is already available and used in the market. We have for example, partnered with Air BP to deliver sustainable aviation fuel to customers in Sweden and France. In addition, Lufthansa and KLM use our renewable product, blended with fossil jet fuel, continuously on flights departing from Frankfurt and Schiphol Airport.” READ MORE