Sustainable procurement of bio-based raw materials

The increase in NExBTL renewable diesel refining capacity to 2 million tons annually in 2011 resulted in Neste Oil doubling the amount of raw material it needed for refining purposes compared to 2010. Neste Oil used a total of 0.97 million tons (0.48) of renewable raw materials in 2011, which is approximately 5% of the amount of vegetable oils and fats that the energy sector used in 2011 which totaled some 20.5 million tons (Source: Oil World, January 2012). The volume of bio-based raw materials used in refining is projected to rise to a maximum of 2.4 million tons in 2012 when the refining capacity of the company’s new refineries are fully utilized.

The use of renewable raw materials in 2011

 

Raw material Planned share of procurement Proportion used in refining 2011
Crude palm oil <50% 54%*
Waste and sidestreams (incl. waste animal fat, palm fatty acid distillate, stearin) Approx. 40% 41% 
Other (incl. rapeseed oil, jatropha oil, soy oil, and camelina oil) Approx. 10% 5% 

* Includes also 2% of RBD palm oil (Refined Bleached Deodorized)

Neste Oil's targets for bio-based raw material procurement in 2012:

  • To increase the volumes of raw materials classified as waste- and sidestream-based that it uses in refining by several hundreds of thousands of tons compared to what was used in 2011 (the total in 2011 was 315,000 tons more than in 2010).
  • To increase the proportion of certified raw materials by a minimum of 10%-points compared to 2011.
  • To further extend its raw material portfolio by introducing new raw materials.

 

Neste Oil's mid- and long-term targets for bio-based raw material procurement:

  • To increase the share of sidestreams, residues, waste, and next-generation raw materials to account for more than 50% of its raw material base.
  • To introduce new raw materials that make the largest contribution to reducing greenhouse gases to meet current and future criteria for reducing emissions.
  • To promote research on new raw materials and prepare for industrial-scale fuel production from next-generation raw materials (such as microbial and algae oils, biowax produced from forest industry residue) that are unsuitable for human consumption.

 

Ethanol

The ethanol procured by Neste Oil for blending into 95 E10 and 98 E5 gasoline in the Finnish market is also produced from renewable raw materials. Ethanol is used mostly as a blending component. The ethanol used in this way, together with other biofuels, helps Neste Oil and Finland comply with their EU-mandated bio content requirements. 95 E10 gasoline, containing 10% ethanol, reduces fuel-related greenhouse gas emissions by 4-6% compared to conventional gasoline.

Ethanol is produced around the world from a variety of different raw materials, such as sugar cane, sugar beet, and corn. Where Neste Oil sources its ethanol from, and what it is produced from, depends on the market situation.

Neste Oil requires all its ethanol suppliers to operate in accordance with the sustainability criteria of the EU’s Renewable Energy Directive and be able to show a verifiable reduction in greenhouse gas emissions and use only land permitted for cultivation purposes.