Singapore — Finnish refiner and biodiesel producer Neste expects the worldwide demand for renewable diesel to surge in the next decade, driven by increased demand for sustainable road and air transport as well as renewable chemical and polymer products.
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The global renewable diesel demand is estimated to grow more than 20 million mt annually in the next 10 years from 5 million/year in 2019, Neste's Executive Vice President of Renewable Platform, Matti Lehmus told S&P Global Platts Friday.
To keep up with the growing demand, Neste is expanding its renewable products production capacity in Singapore by 1.3 million mt by mid-2022.
In addition, the company is in a feasibility study phase to create 450,000 ton/year sustainable aviation fuel production capacity at its Rotterdam refinery by 2023. Neste is looking to raise its renewable products production capacity to 4.5 million ton/year by mid-2022.
On the feedstock side, Neste is growing the existing feedstock pool by sourcing from new geographical locations and also utilizing new pre-treatment technologies to ensure usage of lower-grade waste product. It is also searching for methods to utilize waste and residuals like municipal waste and algae oil.
The company has taken steps to secure sufficient volumes of waste and residue raw materials by moving closer to suppliers. It has opened offices in Shanghai and Melbourne, which are focusing on waste and residue renewable raw material sourcing.
In China, Neste has started sourcing certified volumes of used cooking oil , or UCO, with the aim of sourcing other waste and residue raw materials from local collectors on the east coast of China, especially in the regions around Shanghai, but later in other big cities as well.
As part of its upstream expansion, the company announced the acquisition of Mahoney Environmental, a collector and recycler of used cooking oil in the US, earlier this month.
Neste expects the global waste and residue availability to grow to over 35 million tons by 2030 and is targeting a 100% waste and residues share of total renewable raw material inputs by 2025. Asia will supply a substantial portion of global waste and residue materials.