Neste Oil Aims to Become World’s Leading Producer of Second-Generation Renewable Diesel
27 September 2006
|NExBTL, Neste’s second-generation renewable diesel, has outperformed FT GTL fuels in emissions tests. Click to enlarge.|
Neste Oil’s Board of Directors has approved a strategy aimed at making the company the world’s leading producer of second-generation renewable diesel fuel.
The Finnish company has developed a refinery-based proprietary technology it calls NExBTL for the high-pressure hydrogenation of fatty acids. The process can use a flexible input of any vegetable oil or animal fat and produce a product with characteristics similar to Fischer-Tropsch output. (Earlier post.)
The NExBTL process is different than both the transesterification process used to produced fatty acid methyl ester (biodiesel) and Fischer-Tropsch conversion used in BTL projects.
|Fuel Property Comparison|
|Density at +15º C (kg/m3||775 ... 785||770 ... 785||~885||~835|
|Viscosity at +40º C (mm2/s||2.9 ... 3.5||3.2 ... 4.5||~4.5||~3.5|
|Cetane number||~84 ... 99||~73 ... 81||~51||~53|
|Cloud point (ºC)||~ -5 ... -30||~ 0 ... -25||~ -5||~ -5|
|Heating value (lower) (MJ/kg)||~44||~43||~38||~43|
|Heating value (MJ/liter)||~ 34||~ 34||~ 34||~ 36|
|Polyaromatic content (wt %)||0||0||0||0|
|Oxygen content (wt %)||0||0||~ 11||0|
|Sulfur content (mg/kg)||< 10||< 10||< 10||< 10|
Oil refining will remain as Neste Oil’s central business, however, and the company will continue to invest in new conversion capacity at its current refineries.
The foundation of Neste Oil’s strategy will remain based on the company’s ability to use its unique refining know-how to produce high-quality fuels for cleaner traffic from a variety of lower-cost raw materials. Neste Oil expects to invest several billion euros in growth projects over the next 10 years.
The central message that we want to communicate is that we have both the will and the financial resources to invest in growth in the areas where we are strong. By following our strategy, we will make the best use of our know-how. We are aiming to be the world’s leading biodiesel producer, which means production volumes of millions of tons annually. Our proprietary biodiesel, which is based on a long-term R&D effort, can be produced from a variety of vegetable oils and animal fats—and is a premium-quality fuel that clearly outperforms both the vegetable oil and crude oil-based diesel fuels currently on the market.
We will build several biodiesel production facilities in various market areas, either alone or with partners, in the years to come. In addition, we will be even more active in research and development in the biofuels area to utilize different renewable raw materials—while continuing to invest in new conversion capacity at our refineries in Porvoo and Naantali.—Risto Rinne, Neste Oil President & CEO
Neste’ largest-ever investment in a new diesel production line at the Porvoo refinery is due to be completed this winter, and is expected to enhance the company’s cash flow significantly.
The Board has reviewed a number of strategic options of how we can best ensure that this enhanced profitability and cash flow benefits our shareholders. And we have concluded that a strong growth strategy, based on biodiesel production and driven by our own technology, is the best way of generating shareholder value.—Timo Peltola, the Chairman of Neste Oil’s Board of Directors
The Board defined the company’s vision to be “The leading provider of cleaner traffic fuels.”
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