Neste Oil strengthens algae oil procurement program for renewable diesel with a new off-take agreement
Neste Oil and Renewable Algae Energy (RAE), a US-based algae biomass producer, have signed a contingent commercial algae oil off-take agreement. Algae oil is one of the alternatives being researched by Neste Oil for use as a feedstock for producing NEXBTL renewable diesel in the future.
Cooperation with RAE is intended to secure Neste Oil’s access to a cost-effective supply of industrial volumes of algae oil in the future. Implementation of the agreement will require RAE to increase its algae oil production capacity and to comply with the requirements of biofuel legislation with strict sustainability criteria in the US and the EU throughout the production chain. RAE anticipates that it will be able to produce commercial-scale volumes of algae oil from 2016 onwards.
The agreement between the two companies is non-exclusive and Neste Oil is actively looking for other partners that are aiming to begin commercial algae oil production.
Neste Oil is continuing research on new feedstocks and extending its feedstock base in line with its strategy; and is currently the world’s only biofuel producer capable of producing premium-quality renewable fuel on a commercial scale from more than 10 different inputs. With NEXBTL renewable diesel capacity of approx. 2 million tons annually, Neste Oil is the world's largest renewable diesel producer.
Neste Oil has previously announced off-take agreement with another algae producer and is also a partner in various university-led algae research projects under way in Australia and in Europe that are testing a range of methods for cultivating algae outdoors.