Neste Chooses the Netherlands for Possible Next Refinery for Renewable Products
Finnish chemicals firm aims to grow its strategy for sustainable solutions in Rotterdam
Neste Corporation has announced that it has chosen Rotterdam, the Netherlands, as the location to build its possible next world-class refinery for renewable products. Neste aims to create readiness for a final decision by its Board of Directors towards the end of 2021 or early 2022.
Neste refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. It is the world’s leading producer of renewable diesel and sustainable aviation fuel and ranks 4th on the Corporate Knights’ Global 100 list of the world’s most sustainable companies.
Neste says it made its choice based on thorough studies of two possible locations: Porvoo in Finland and Rotterdam. While there were many positive drivers for both sites, the difference between the costs was significant in favor of Rotterdam.
Advantages of the Netherlands
‘I appreciate the open dialogue we had with the authorities in both Finland and the Netherlands throughout the study phase,’ said Peter Vanacker, President and CEO of Neste. ‘We experienced a constructive approach to finding the best solutions to support our future growth,’ he said. ‘Our decision is based on safeguarding our future competitive position and executing the growth strategy for our renewable products.’
Access to markets,raw materials and low-carbon hydrogen
The selection criteria for the new refinery included: current markets and the regulatory framework that supports market growth; raw material sourcing opportunities; investment and operating costs; infrastructure and low-carbon utilities; and local synergies.
According to Neste, the main factors that contribute to lower costs in the Netherlands are the logistics costs, site-specific construction costs and the availability of low-carbon hydrogen facilities. Furthermore, Rotterdam is advantageous because of its proximity to new markets for Neste’s Renewable Aviation and Renewable Polymers and Chemicals activities. The Dutch city is also in close proximity to raw material sources.
Neste in the Netherlands
The Netherlands provides Neste with a strong foothold in the Antwerp-Rotterdam-Rhein-Ruhr Area (ARRRA), one of the key industrial regions in Europe and one of the top five chemical clusters in the world. Neste has been active in the Netherlands chemicals industry since 2011 when its brand new Rotterdam refinery for renewable products started operations. The Rotterdam location, together with the company’s Porvoo and Singapore facilities, are the world’s biggest and most advanced renewable diesel refineries. Since 2011, Neste further expanded its activities in the Netherlands via growth in Rotterdam and in Sluiskil. In 2019, Neste established an office in Hoofddorp, the Netherlands, which serves as the global hub for its Renewable Aviation business. And in 2020 Neste acquired a stake in Amsterdam Airport Schiphol fuel storage company Aircraft Fuel Supply (AFS).
Source: Neste press release
15 March 2021