S’pore Home to World’s Largest Production Facility for Jet Fuel Made from Waste Materials

by Kok Yufeng (The Straits Times) Singapore is now home to the world’s largest production facility for jet fuel made from waste materials like used cooking oil and animal fats – a significant step in the nation’s drive to reduce carbon emissions.

This is after Finnish energy giant Neste expanded the capacity of its Tuas South refinery as part of a €1.6 billion (S$2.3 billion) project, which began in 2019 but was delayed by a year due to Covid-19.

The refinery can now produce up to a million tonnes of sustainable aviation fuel (SAF) each year – 10 times Neste’s previous capacity.

Production at the expanded plant, which also makes renewable diesel and renewable raw materials for polymers and chemicals, started in mid-April. It is expected to ramp up over the course of 2023.

Amid growing demand for greener fuel in the aviation sector, Neste will also add 500,000 tonnes of annual SAF production capacity by the start of 2024 via modifications at its refinery in Rotterdam in the Netherlands.

There are also plans to further expand the Rotterdam plant so that it will be able to make up to 1.2 million tonnes of SAF a year by the end of 2026.

In a statement on Wednesday, Mr Sami Jauhiainen, Neste’s acting executive vice-president for renewable aviation, said the company has established an integrated SAF supply chain to Changi Airport.

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While the current cost of the eco-friendly fuel is three to five times that of regular jet fuel, the International Air Transport Association has estimated that it could contribute 65 per cent of the reduction in emissions needed by the aviation sector to reach net zero in 2050.

Since July 2022, Singapore Airlines and Scoot flights out of Changi Airport have been using a blend of regular jet fuel and SAF produced by Neste as part of a year-long trial.

Other airlines that have operated flights using a similar blend include American Airlines, Ryanair, Malaysia Airlines and Etihad.

Overall, the expansion of Neste’s Tuas South refinery increases the company’s total production capacity for renewable fuels and materials in Singapore to 2.6 million tonnes per annum – double what it had here before.

The land area that the refinery occupies has also gone up to 45ha, from 19ha. The number of workers has grown from about 120 before the expansion to close to 300 now, the company said.

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New features added to the expanded plant include a pre-treatment facility that has a higher capacity and is capable of processing a wider range of more challenging raw materials used for SAF and renewable diesel.

A waste water treatment plant has been built, avoiding the need to outsource the treatment and disposal to licensed companies, which is what was done before.

A new hydrogen production unit allows Neste to use gases emitted from its production process to make the hydrogen that is needed for fuel refinement.

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Neste has said that it is constantly on the lookout for lower-quality waste materials to use in the production of renewable fuels. One example of this is the oil in waste water that is generated from palm oil mills.

The company is also developing new solutions such as algae to increase and diversify the sources of raw materials that can be used to make renewable fuel. READ MORE

Finnish biofuels producer Neste expects a renewable diesel and sustainable aviation fuel (SAF) production line at its 2.6mn t/yr Singapore refinery to restart in first-half November.

The line is targeted to reach approximately 75pc capacity utilisation by end-2023, and will contribute to SAF sales volumes in 2024, according to the firm's January-September interim report released on 26 October.

The biofuels producer slowed the ramp-up of renewable diesel and SAF production at its Singapore refinery in September owing to "additional equipment inspection and repair works". The inspection and repair works is expected to affect approximately 100,000t of sales volumes, mainly impacting fourth-quarter sales. The production line was also shut over June-August owing to unexpected equipment repairs.

The share of waste and residue feedstocks in Neste's renewable fuel production fell to 92pc in the third quarter, the lowest in at least a year. READ MORE