Neste Oil: Slow legislation may impede biofuel demand

Finland’s Neste Oil, which is in the midst of starting up a US$1.2 billion renewable diesel plant in Singapore has warned that demand may be crimped by the slower-than-expected progress in biofuel legislation in Europe and the U.S. markets. Neste President and CEO Matti Lievonen said in the company’s third-quarter report that its first world-scale renewable diesel plant is due to start in the near future and will be ramped up in steps to full capacity. This will boost Neste’s current biodiesel production from two smaller Finnish plants with a combined capacity of 380,000 tons per annum (tpa). Start-up procedures at the 800,000 tpa Singapore plant, which will produce biodiesel from 100% renewable materials such as palm oil and animal fat, have proceeded smoothly and the plant is expected to come on stream in Q4. (November 9, 2010)