Finnish renewable fuels producer Neste has selected Rotterdam in the Netherlands as the potential location for construction of its new renewable products refinery.
The new refinery forms part of Neste’s strategy, announced in March 2020, to increase its renewable products production capacity in Europe.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Neste has selected two possible locations of Porvoo in Finland and Rotterdam in the Netherlands following a thorough study phase.
However, the difference between the costs is said to be a crucial driver in the potential selection of Rotterdam despite positive drivers for the two locations.
In a press statement, the company said: “Neste has existing sites in both locations. While there are many positive drivers for both sites, the difference between the costs is significant in favour of Rotterdam.”
The firm said that the site selection criteria include current markets and regulatory framework supporting market growth, raw material sourcing opportunities.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIt is also considering investment and operating costs, infrastructure and low carbon utilities, as well as local synergies.
Neste president and CEO Peter Vanacker said: “Based on the thorough studies and calculations, the overall cost of the investment is significantly lower in Rotterdam. Our decision relies on ensuring our future competitiveness and our renewables’ growth strategy execution.”
The site in Rotterdam is expected to benefit from the proximity to raw material sources as well as proximity of new markets for Renewable Aviation and Renewable Polymers and Chemicals.
Neste plans to announce a final investment decision for renewable products refinery by the end of 2021 or early 2022.
The company recently acquired Bunge Loders Croklaan’s refinery plant in Rotterdam, located next to its existing biorefinery.
The refinery comprises a pretreatment facility, tank farm, jetties, and has a pipeline connection to Neste’s site.
