27 August 2009

Global perspectives: Boosting renewable diesel in Finland

By Cris Whetton

Despite ongoing troubles with its diesel plants, Neste Oil has increased its capacity to produce NExBTL renewable diesel following the start-up of a second dedicated NExBTL plant at the company's main refinery at Porvoo, Finland.

The new plant will be capable of producing 170,000 metric tons per year (t/y) of NExBTL renewable diesel. Neste Oil commissioned its first NExBTL plant, also at Porvoo and also with a capacity of 170,000 t/y, in the summer of 2007, and is building two world-scale plants, in Singapore and Rotterdam. Capable of producing 800,000 t/y each, these are due to come on line in 2010 and 2011. “Our NExBTL renewable diesel is the world’s cleanest and best diesel, and is very much in demand because of this,” said Neste Oil’s Deputy Chief Executive Jarmo Honkamaa. “Our customers don’t want to compromise on quality when it comes to meeting their bio content obligations. By replacing conventional diesel with NExBTL everyone can reduce their greenhouse gas emissions significantly and help improve urban air quality.” The company’s stated target is to be the world’s leading supplier of renewable diesel.

Meanwhile, Conoco-Phillips will receive one of two permits required to upgrade its Wilhelmshaven oil refinery in northern Germany. Walter Kulisch, department head at the Oldenburger Gewerbeaufsichtsamt (Trade Inspections), the local issuing body for environmental permits, said the company would get the permit. However, they must also obtain approval for water discharge before starting work. Conoco-Phillips plans to upgrade the facility, which is a simple refinery, to refine crude from Russia.

Along those lines, Russia’s LUKoil is considering investing in a refinery with Conoco-Phillips to process Russian crude on the East Coast of the U.S. “That kind of idea is in discussion,” said LUKoil’s Dmitry Dolgov. “When it will be realized or if it will be realized is impossible to say now. We are looking at that kind of possibility.” However, a spokesperson for Conoco-Phillips, said in an e-mail the company had no plans to build a new U.S. refinery. LUKoil, Russia’s second-largest oil producer, has stakes in five refineries outside its home country and controls more than 1,500 gas stations in the U.S. ConocoPhillips, which has the second-largest refining capacity in the U.S., owns 20% of LUKoil.

Cris Whetton is InTech’s European correspondent.