Finnish biofuel producer and oil refiner Neste made a final investment decision on additional renewable products production in Singapore with a larger-than-expected investment of €1.4 billion ($1.6 billion), the company said on Wednesday.
Neste said the decision is based on a growing global market demand for low-carbon solutions in cities, transport, aviation, polymers and chemicals.
The investment will extend Neste’s renewable product overall capacity in Singapore by up to 1.3 million tons per annum, bringing the total renewable product capacity close to 4.5 million tons annually in 2022.
The company’s target is to start up the new production line during the first half of 2022.
"Neste is in the business of helping transport and cities, aviation, polymers and chemicals customers make their business more sustainable and will continue to lead the way for renewable products. We are already a global leader in renewable products produced from waste and residues. This investment marks an important step in the execution of our profitable growth strategy globally," said Peter Vanacker, president and CEO of Neste.
Neste currently has a renewable products production capacity of 2.7 million tons annually. Of this total, over one million is produced in Singapore, the same amount in Rotterdam in the Netherlands and the rest in Porvoo, Finland.
"Before the new production line in Singapore, we will continue eliminating bottlenecks in our existing production, bringing the existing capacity to 3 million tons by 2020," Vanacker said.
By Murat Temizer