Neste picks Singapore instead of US for new biofuels capacity

Neste, a Finland-based oil company and supplier of renewable fuels, is considering additional production capacity for renewable diesel, renewable aviation fuel and raw materials for various biochemicals in Singapore, where the company currently has capacity.

In statement last week, Neste said the decision would require a technical design for a the new production line, with the aim of a final investment decision by the end of 2018.

"There were two equally good locations for the refinery, the United States and Singapore. We investigated the strengths of both potential operating environments, and also revisited our outlooks for raw materials and demand. Based on this overall assessment, we settled on Singapore," said Kaisa Hietala, head of Neste's Renewable Products business.

If the project proceeds as planned, the new production line will begin by 2022, which would extend Neste's current capacity in the Singapore refinery by one million tons.

Neste currently has renewable diesel production capacity of 2.6 million tons, 1 million of which is produced in Singapore, the same amount in Rotterdam and the remainder in Porvoo, Finland.

These refineries have the capability to produce renewable aviation fuel and raw materials for biochemicals.