Advanced BioFuels USA

by Jim Lane (Biofuels Digest) from Finland and Ohio comes the news that Neste has established a 50/50 joint venture with Marathon Petroleum to produce renewable diesel following a conversion project of Marathon’s refinery in Martinez, California.

Through the JV Neste obtains a 50% interest in the Martinez Renewable Fuels project. The production output will be split evenly between the joint venture partners, and each partner will be responsible to market the products under its own brand and responsibility. The facility will be operated by Marathon, which has long experience as a leading refinery operator and in executing major capex projects in the US. Both Neste and Marathon will be responsible for feedstock sourcing for the joint venture.

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We reported that Neste would modify its existing renewables production capacity in Rotterdam, the Netherlands, to enable production of Sustainable Aviation Fuel (SAF). Currently the refinery produces mainly Neste MY Renewable Diesel™. The modifications to the refinery, an investment of approximately EUR 190 million, will enable Neste to optionally produce up to 500,000 tons of SAF per annum as part of the existing capacity. More on the story.

In January 2021, we reported that Neste successfully concluded its first series of trial runs processing liquefied waste plastic at its Porvoo refinery in Finland.

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Marathon announced in 2020 that they were investigating the option to convert Martinez to renewable diesel. In  although Marathon Energy is still evaluating the potential refit of its Martinez oil refinery to produce renewable diesel, Hydrocarbon Engineering reports Marathon Energy the company has applied for permits in hopes of moving the process forward. The company said at the time they were aiming to commission production in 2022 and reach full capacity in 2023, if it takes the decision to take on the project. Using animal fats and vegetable oils, the facility would produce 736 million gallons per year. More on the story.

In February, we reported that their project in Dickinson, North Dakota was up and running — a much smaller but no less significant project in some ways, since it’s on the edge of the Bakken shale.

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In May, we reported on a decarbonization gambit by Marathon for the North Dakota operation. Marathon signed an agreement with One Energy Enterprises LLC to install five 2.3 megawatt wind turbines at MPC’s renewable diesel facility in Dickinson, North Dakota. The wind turbines will provide energy to the facility and help further decrease its carbon emissions profile. MPC contracted with One Energy to develop, own, and operate the turbines. One Energy will provide the capital for the project and MPC will pay a fixed price for the wind-generated electricity delivered by One Energy for a period of 20 years. The turbines are expected to generate more than 40 million kilowatt hours of energy each year, providing approximately 45% of the renewable diesel facility’s electricity needs. More on the story.

In August we reported that Marathon and ADM formed a joint venture for the production of soybean oil to supply rapidly growing demand for renewable diesel fuel. READ MORE

Marathon Petroleum Corp Announces Joint Venture for Martinez Renewable Fuels Project with Neste (Marathon Petroleum Corp/PR Newswire)

Neste to establish a joint venture for production of renewable fuels in the United States with Marathon Petroleum (Neste/PR Newswire/NBC4)

Neste, Marathon Petroleum Form Renewable Diesel Joint Venture (ADVFN/Dow Jones News)

Neste and Marathon Petroleum Corp agree renewable fuels joint venture (Bioenergy International)

Marathon Petroleum to Proceed with Conversion of Martinez Refinery to Renewable Fuels Facility (Marathon)

Marathon, Neste partner on Martinez conversion project (Biomass Magazine)

Marathon, Neste form joint venture for 730 mgy Martinez, California, renewable diesel project (Biobased Diesel Daily)