Neste starts SAF production at its Rotterdam refinery with an initial 500,000 tons annual capacity

Finnish energy company Neste, which describes itself at the world’s leading producer of sustainable aviation fuel, has started producing SAF at its renewable products refinery in Rotterdam, the Netherlands. Modifications to the refinery enable production of up to 500,000 tons of SAF per year, says Neste, thereby increasing its annual global SAF production capability to 1.5 million tons, or 1.875 billion litres. In addition to the recent modifications to the refinery, the company says it will continue investing to grow the Rotterdam capacity to make the facility the world’s largest producing renewable diesel and SAF. The expansion plans come despite what Neste CEO Heikki Malinen described recently as an “unsatisfactory” financial performance by the company in 2024 and a “very challenging” current market environment that has now resulted in the loss of 510 jobs globally, nearly 10% of its workforce.

However, said Malinen, commenting on the new SAF production in Rotterdam, “Neste is fully committed to supporting customers in the aviation industry to reduce their greenhouse gas emissions, and this milestone underlines that commitment.

“Our SAF production capability enables us to significantly contribute to the implementation of the ReFuelEU Aviation Regulation and similar SAF mandates. Policies like these are crucial to ramping up SAF production and usage, and we need to keep our ambitions and targets high.

“At the same time, it requires support and close cooperation across the whole aviation ecosystem to accelerate the energy transition and related emission reductions.”

Neste has plans to more than double Rotterdam’s production capacity to 2.7 million tons of renewable products annually. The expansion, scheduled for completion in 2027, will increase Neste’s total global annual renewable fuels production capacity to 6.8 million tons, with SAF accounting for 2.2 million tons.

In addition to the Rotterdam refinery, Neste has SAF production capabilities at its refineries in Singapore and Porvoo, Finland.

According to the company’s annual report for 2024 published in February, Neste’s profitability (EBITDA) totalled €1,252 million, compared to €3,458 million in 2023.

“New players and increased capacity have entered the renewables industry, resulting in a decline in product prices and intensified demand for waste and residue raw materials,” said Malinen in his review of the year. “Consequently, sales margins fell significantly below previous years’ levels. In addition, our refineries faced some operational challenges that have since been resolved.”

With more positive news, the company reports that SAF sales increased in the final quarter of 2024. In 2025, Neste expects the market for renewable fuels to grow, driven by mandates and incentives like ReFuelEU Aviation.

“However,” added Malinen in the report, “voluntary demand for sustainable aviation fuel is likely to remain constrained. The year 2024 showed that the markets for renewable products are more volatile then before, emphasising the need to deliver value for our stakeholders consistently, regardless of market conditions.”

As a result, Neste has implemented a performance improvement programme and has also updated financial targets “to reflect the current priorities”.

Said Malinen: “Despite recent headwinds in the green transition, the challenge of climate change continues to be urgent. The coming decades necessitate a significant reduction in the use of fossil energy sources. Neste is well-positioned to address this challenge, offering solutions that enable decarbonisation even in hard-to-abate sectors like aviation. Thus, our long-term business fundamentals remain strong.”

Photo: Neste’s renewable fuels refinery in Rotterdam

Christopher Surgenor

Editor

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