NExBTL - resurssiviisas diesel

Teolliset Symbioosit Foorumi, 26.3.2014

Lars Peter Lindfors, Teknologiajohtaja, Neste Oil

Case NExBTL: Why, what and how Making Neste Oil the world’s leading supplier of renewable diesel Since 2008, the renewable business (Cleantech) has grown from 0 in earnings and revenue to 273 m€ in earnings and 2,5 bn € in revenue in 2013. The concept of NExBTL is based on industrial symbiosis and recovering by-products or waste of other companies

3

To combat

climate change and

reduce emissions

To reduce

society’s dependency

on crude oil and

imports

To safeguard

energy security

The drivers for biofuels

12 13

20

5 5

8

5 5

6

4 4

5

0

10

20

30

40

50

2014 2015 2020

Asia-Pacific

Latin America

North America

Europe

+8% p.a

Bio/renewable diesel demand,

million tons

26 27

39

4

Source: Neste Oil estimates

The growth estimate

5

6% 3.5%

>5%

5.8% 4.8%

6.3%

7.8%

4.1% 5%

• Biofuel target of 10% for

2020 firmly in place

• Differences between

countries

• With growing mandates,

higher quality biofuels

are needed

EU biofuel mandates

6

To be the

preferred

partner for

cleaner traffic

fuel solutions

Our vision

• Offering reliability and satisfaction for end consumers

• Providing a simple solution for fuel producers and

distributors

• Experiencing cooperation pull from automotive industry

• Achieving societal acceptance

7

Key elements of the value proposition

Being innovative drives our leadership position

8

Creating

unique

technological

innovations

Expanding

raw material

base

Several new

products

since 2008

1,000

professionals

in R&D and

engineering

Co-operation

with large

number of

leading

universities,

institutes and

companies

City-gasoline:

lead-free, with

MTBE as an

important

component

1980

Lead-free Futura

95E, replacing

92-octane

gasoline

Cleaner products along the way

Futura Citydiesel:

end of sales for the

low-aromatic and

nearly sulfur-free

gasoline

1990

Sulfur-free

gasolines and

diesel fuels

2000

NExBTL

renewable

aviation fuel

2010

Neste Alfa

lubricants

Futura brand:

gasoline that keeps

engines clean

City Futura, with an

oxygen-containing

MTBE component

synthetic PAO

VHVI

base oils

New Futura:

less sulfur than

ever before

New Futura

gasoline market

launch

Neste Green

diesel

NExBTL diesel

from renewable

materials

Neste Green 100

diesel

Neste Pro

Diesel

9

1994

2001

1996

2002 First project to

develop the use of

biofeedstocks in

refining

First patent

application

No basis as yet

for commercial

use

2003

2005

2007

R&D relaunched

following start of

work on the EU’s

biofuel directive

Development of

the technology

kicked off by

Neste Oil’s R&D

and Neste Jacobs

Process modeling

completed

Basic design of a

NExBTL unit

commenced

First investment

decision to build a

NExBTL plant

First plant

commissioned at

Porvoo

Second plant

under construction

Decision to build a

800,000 t/a plant

in Singapore

Decision to build a

800,000 t/a plant

in Rotterdam

2008

2009

Second plant

commissioned

at Porvoo

Innovation:The 1st phase of the NExBTL revolution

NExBTL is fully compatible with fossil diesel

Biodiesel

(FAME / RME) Fossil diesel NExBTL (HVO) Fischer-Tropsch

Feedstock

Vegetable oils &

animal fats (mainly

rapeseed oil)

Mineral Oil

Flexible mix of raw

materials

(vegetable oils

& waste fats)

Biomass

Technology Esterification Refining Hydrogenation Gasification &

Fischer-Tropsch

End product

Ester-based,

conventional bio-

diesel

Hydrocarbon

(gasoline, jet fuel,

diesel)

Bio-based

hydrocarbon

(renewable gasoline,

jet fuel, diesel)

Bio-based

hydrocarbon

(renewable gasoline,

jet fuel, diesel)

Chemical

composition

O

II

H3C-O-C-R

CnH2n+2

+ aromatics

CnH2n

CnHn

CnH2n+2 CnH2n+2

11

FAME = Fatty Acid Methyl Ester RME = Rapeseed Methyl Ester HVO = Hydrotreated Vegetable Oil

NExBTL (HVO); drop-in fuels with superior quality

NExBTL (HVO)

Hydrocarbon

• No blending restrictions

• All emissions reduced

• No "use by" -date

• Energy content 44 MJ/kg

• Compatible with existing

vehicles and distribution

FAME biodiesel

Fatty acid methyl ester

• Maximum blend of 7 %

(B7)

• Energy content 37-38

MJ/kg

• Long-term storage

problematic

12

13

Becoming the world’s largest renewable diesel

producer, with 2 million t/a of NExBTL renewable

fuel capacity has required;

• ~ 1,5 billion € in investments

• entering into a regulatory driven business

• prioritization and focusing

Risk taking –thinking big!

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

2007 2008 2009 2010 2011 2012 2013

kt

Ability to focus; use of waste & residual feedstock

Sustainability ensuring access to markets

and customers

15

• Meeting strict sustainability

criteria of EU and US biofuel

regulations

• Sustainability management

throughout the supply chain

• Renewable feedstock

traced back to their origin

• 100% certified palm oil

Member since 2007/08

16

NExBTL sales by region 2013

44% 56%

0

500

1 000

1 500

2 000

2011 2012 2013

ktons

NExBTL sales volume

Global majors Specialized

companies

Regional retail and

wholesale companies

Ability to focus; Customer portfolio has grown to

50 customers globally

Main reasons for the success: 1. Innovation 2. Risk taking 3. Hard work and right competencies

We aim for continuous development and

improvement – flexibility is the key word

18

Productivity

growth

Product value

maximization

Feedstock

flexibility

Expanding existing capacity to 2.3 Mton/a

and driving down production costs

19

Target 2015

• Expand capacity

by 15% with minor

investments

• Ensure long

maintenance

shutdown intervals

of over 3 years

2.3 Mton

/year

$200 /ton

Capacity 2 Mton

/year

$220 /ton Production

costs*

Current

*at full capacity utilization

NEXBTL product family – 100% bio-based

NEXBTL

renewable

diesel

NEXBTL

renewable

aviation fuel

NEXBTL

renewable

naphtha and

propane

NEXBTL

renewable

isoalkane

20

Thank you.

Lars Peter Lindfors, SVP Technology

lars-peter.lindfors@nesteoil.com