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Finnish Neste expects aviation biofuel demand to exceed 12 MMt by 2030

October 13/2021

MOSCOW (MRC) -- Finnish oil refiner and biofuels maker Neste said it estimates demand for the aviation fuel to exceed 12 MMtpy by 2030, according to Hydrocarbonprocessing.

The company expects to be able to produce 1.5 MMtpy of biofuels for the aviation industry by the end of 2023 vs. about 100,000 tpy currently.

Renewables now account for 90% of Neste's operating profit and the company says it aims to have three strong renewables businesses by 2030 in sustainable aviation fuel, biodiesel and polymers and chemicals.

In its strategy update it added it sees road transportation biodiesel demand possibly rising to as high as 30 MMt. It also reduced its capital expenditure for 2021 to 1.1 B euros ($1.29 B) from 1.2 B, excluding acquisitions.

The company added it has made no changes to financial targets or dividend policy.

As MRC reported before, Neste, the worlds leading sustainable aviation fuel producer, and TripActions and Reed & Mackay, the fastest-growing travel and spend management group, have announced a groundbreaking global partnership to offer Neste MY Sustainable Aviation Fuel to all TripActions Group customers.

We remind that in July, 2021, Finnish Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasells Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

Neste (Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. The company is the worlds leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. In 2020, Neste's revenue stood at EUR11.8 billion, with 94% of the companys comparable operating profit coming from renewable products.
Author:Margaret Volkova
Tags:Europe, bioplastics, PP, PE, crude and gaz condensate, petrochemistry, recikling, LyondellBasell, Neste oil, sustainable development, Germany, Finland.
Category:General News
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