Finnish renewable and sustainable fuel producer Neste is to buy Bunge Loders Croklaan’s refinery in Rotterdam, the Netherlands, for €258 million.
The facility, which is next to Neste’s existing biorefinery and processes speciality oils, includes a pretreatment facility, tank farm, jetties and a pipeline connection to Neste’s site. Bunge will lease back the facility as part of a phased transition until 2024, to allow it to continue to supply its customers. The full pretreatment capacity is expected to be available to process Neste feedstock by the end of 2024.
Neste says that the added pretreatment and terminal capacity will support further growth in its production capacity, and enable it to meet the growing demand for renewable diesel, sustainable aviation fuel and feedstock for renewable chemicals. The company will expand its annual renewable production capacity from 3.2 million tonnes now to 4.5 million tonnes by Q1 2023.
‘The acquisition of the refinery plant supports our global growth strategy in renewables. It allows us to accelerate the scaling up of our renewable raw material pretreatment capacity, which is an important driver for expanding the use of waste and residue feedstocks and increasing our feedstock flexibility. We are committed to increasing the share of waste and residues in our renewables feedstock mix to 100% by 2025 and to grow our production platform to enable over 20 million tonnes of greenhouse gas reductions for our customers by 2030,’ says Neste’s president and CEO Peter Vanacker.
Earlier in 2020, Neste bought Count Terminal Rotterdam, which stores, refines and blends renewable waste and residue-based raw materials and leased extra storage at Tianjin Lingang Port in northeastern China for used cooking oil. Its Rotterdam and Singapore refineries are the world’s largest and most advanced renewable fuels refineries.