Neste to acquire used cooking oil collection and aggregation business from Crimson Renewable Energy in the US
Neste, the world's leading producer of renewable diesel and sustainable aviation fuel produced from waste and residue raw materials, will acquire the used cooking oil (UCO) collection and aggregation business and related assets in the United States from Crimson Renewable Energy Holdings, LLC.
The transaction includes shares in SeQuential Environmental Services, LLC, and Pure, LLC, as well as a UCO processing plant in Salem, Oregon. The transaction is subject to the fulfillment of customary closing conditions and regulatory approval.
Through the transaction, Neste is acquiring a leading UCO collection and recycling business on the US West Coast, covering the collection, logistics and storage of UCO in California, Oregon and Washington.
Together with the previous acquisitions of Mahoney Environmental and Agri Trading in the United States, IH Demeter in the Netherlands, and Walco Foods in Ireland, the transaction continues to enhance Neste’s global raw materials sourcing platform and support Neste’s aim to serve the customers with the growing global need for renewable products.
Neste currently has a renewable products global production capacity of 3.3 million tons annually. Neste’s 50-50 joint venture for the production of renewable diesel with Marathon Petroleum, Martinez Renewables in Martinez, California, is expected to commence production in early 2023. Pretreatment capabilities are expected to come online in the second half of 2023, and upon completion, Martinez Renewables is expected to increase Neste’s renewable products capacity by slightly over 1 million tons (365 million US gallons) per annum.
Neste’s ongoing Singapore refinery expansion project and Martinez Renewables will increase the total production capacity of renewable products to 5.5 million tons by the end of 2023. When completed, Neste’s Rotterdam refinery expansion project in the Netherlands will further increase the company’s total production capacity of renewable products to 6.8 million tons by the end of 2026.