Neste announces $1 billion biodiesel project in the Netherlands; new plant to be world’s largest

In the Netherlands, Neste Oil said that it will build an 800,000 tonne biodiesel plant in Rotterdam, with an estimated project cost of $1 billion. The plant, which will produce Neste’s proprietary biodiesel NExBTL biodiesel, and will be the same size as the Singapore facility announced by Neste earlier this year. They are currently the largest announced biodiesel projects in the world. The company said that it would commence construction this year and the plant will be complete by 2011.

Neste Oil background

Neste said last month that it will launch “Neste Green Diesel” line of hydrotreated vegetable oils and said that the fuel will be suitable for all diesel vehicles despite a biofuel content of more than 10 percent. The company said that its hydrotreatment proces, where vegetable oils and hydrogen are blended, made it possible to exceed the 5 percent biodiesel blend limit that it currently considered safe for all diesel vehicles by vehicle makers.

In Singapore, Neste Oil recently selected Technip as contractor for its 430 Mgy next-generation biodiesel plant in Singapore. The $800 million project will be the world’s largest biodiesel plant. Construction will commence in the first half of 2008.

The plant would be completed by the end of 2010, and will use palm oil certified by the Roundtable on Sustainable Palm Oil (RSPO).

Singapore’s Economic Development Board has aimed throughout this year for a leading position in second-generation biofuels. Julian Ho, executive director for energy, chemical and engineering services at Singapore’s Economic Development Board, told the International Herald Tribune “We feel that if we’re going to focus on a sustainable type of activity we need to look beyond first-generation biofuels: Those made from food crops. Right now, everybody in the region seems to focus more on first-generation biofuels, but what we really want is to be the leading place for second-generation biofuels in Asia.

The government recently touted its support of biodiesel production on Jurong Island. Singapore biodiesel production will reach 1 million tons in 2010, and 3 million tons by 2015.

Jurong Island is the petrochemical hub for Singapore and Southeast Asia in general. Two plants are currently in place, a Cremer facility capable of 200,000 tons and a joint venture between Wilmar and Archer-Daniels-Midland that has a capacity of 150,000 tons. Singapore is considered ideal for palm oil biodiesel because of its proximity to the feedstock plantations in Malaysia, Indonesia and Thailand as well as its world-class fuel terminal facilities.

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