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Neste Shifts To Palm Oil For Biodiesel Feedstock

Thu, 06/04/2009 - 8:07am

By The Associated Press - June 4, 2009

Palm oil is now one of the feedstocks used by Neste Oil to produce its NExBTL renewable diesel, which is the cleanest diesel fuel on the market today. The company recently received its first cargo (5,000 tons) of palm oil and expects to use at least 50,000 tons of certified palm oil this year. This figure is expected to rise rapidly in subsequent years.

"Neste Oil is a pioneer in using sustainably produced raw materials for biofuel production. We require our palm oil suppliers to be members of the Roundtable on Sustainable Palm Oil (RSPO) and commit to sustainability and continuous development," says Executive Vice President, Renewable Fuels and Deputy CEO, Jarmo Honkamaa.

The RSPO is an organization that brings together palm oil producers, users, and NGOs in the interests of promoting the production of sustainable palm oil.

"Neste Oil has developed a system for the full traceablity of the palm oil it uses, all the way from plantations to NExBTL plants. We believe that responsible companies can make a difference. As a forerunner, Neste Oil is putting a lot of effort into establishing exemplary procedures for its operations, ones that we believe could also act as a model for other companies and industries using palm oil," continues Honkamaa.

NExBTL renewable diesel offers 40–80% lower greenhouse gas emissions compared to the best fossil diesel fuels, depending on the feedstock used. The NExBTL process is flexible in terms of feedstock and can use a wide variety of different vegetable oils and waste animal fat sourced from the food industry.

Neste Oil's R&D is focused on developing new industrial-scale renewable raw materials with good GHG-saving potential, such as algae, other microbes, and wood residues. Projects in these areas are under way with over 20 research communities worldwide.

The use of biofuels is expected to rise significantly during the next few years. The European target for renewable energy in transport fuels will increase to 10% in 2020. Sustainably produced biofuels will play a significant role in reducing emissions generated by traffic and transport in Europe.

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