Neste Acquires Stake in Changi Airport Joint Venture to Supply Sustainable Aviation Fuel

Neste Singapore refinery – 180 degree aerial view

(IN BRIEF) Neste, a leading producer of sustainable aviation fuel (SAF), has completed its EUR 1.6 billion Singapore Expansion project. The expansion has doubled Neste’s production capacity in Singapore, making it the world’s leading SAF producer. The refinery’s total capacity now stands at 2.6 million tons annually, with up to one million tons dedicated to SAF production. Neste has also established an integrated SAF supply chain to Singapore Changi Airport and has acquired a minority stake in the fuel storage and infrastructure joint venture at the airport. The company aims to support the global aviation industry’s net-zero emissions goal by 2050. By using Neste’s SAF, greenhouse gas emissions can be reduced by up to 80% compared to fossil jet fuel. Neste is expanding its SAF supply network globally, with airports in San Francisco, Los Angeles, Amsterdam, and Helsinki already included. The company plans to reach a total SAF production capability of 1.5 million tons per year by the end of 2023 and 2.2 million tons upon completion of the Rotterdam refinery expansion in the first half of 2026.

(PRESS RELEASE) ESPOO, 17-May-2023 — /EuropaWire/ — Neste (HEL: NESTE), the world’s leading producer of sustainable aviation fuel and renewable diesel, and renewable feedstock solutions for various polymers and chemicals industry uses, is proud to announce the successful completion of its EUR 1.6 billion Singapore Expansion project, marking a significant milestone for the company. The expansion project, initiated in December 2018, has doubled Neste’s production capacity in Singapore and solidified its position as the world’s leading sustainable aviation fuel (SAF) producer.

The start-up of the refinery expansion was completed in mid-April, and today, Neste is celebrating the grand opening of the newly expanded facility. With the additional capacity, the Singapore refinery now boasts a total production capability of 2.6 million tons annually, of which up to one million tons is dedicated to the production of sustainable aviation fuel.

“We celebrate today our Singapore refinery expansion opening with our customers, partners and employees. This marks another important milestone in our renewables growth strategy execution. The completion of the construction of the refinery is a remarkable achievement given the complexity of the project and as it was carried out during a global pandemic. I want to express my sincere and warmest thanks to all our partners and employees who have been part of this project,” says Matti Lehmus, President and CEO of Neste. 

“Singapore has world-class logistics connectivity enabling efficient transportation of the renewable raw materials as well as final products globally. Also, its world-class education supports the availability of future talents to be a part of our production and commercial operations, as well as to enhance our R&D in our recently established Innovation Center,” continues Lehmus.

Neste’s commitment to supporting the aviation industry in achieving its net-zero emissions target by 2050 is further evidenced by its efforts in Singapore. As part of the Green Plan 2030 and the Sustainable Air Hub Blueprint, Neste is pleased to contribute to Singapore’s ambitious emission reduction targets. To facilitate the direct supply of blended Neste MY Sustainable Aviation Fuel™ to airlines at Singapore Changi Airport, Neste has agreed to acquire a stake and become a minority shareholder in Changi Airport Fuel Hydrant Installation Company Pte Ltd (CAFHI), the fuel storage and infrastructure joint venture in the airport.

“Singapore is a leading aviation hub in the Asia-Pacific region. In addition to being a global hub for Neste’s SAF production, we have established an integrated SAF supply chain to Singapore Changi Airport to make our product available to an increasing number of regional and international airlines. The neat SAF is produced at our refinery located in the Tuas area of Singapore, then blended together with conventional fossil jet fuel and certified to meet jet fuel specifications at the blending terminal in Singapore, and finally delivered to our customers at Changi Airport,” says Sami Jauhiainen, acting Executive Vice President for the Renewable Aviation business unit of Neste.

The acquisition is subject to customary closing conditions and will enable Neste to establish an integrated SAF supply chain at Changi Airport. This strategic move aligns with Neste’s vision of developing a global network of airports where it can directly supply sustainable aviation fuel to support its aviation customers in reducing their emissions and achieving their climate targets. Singapore Changi Airport joins the ranks of other airports in Neste’s network, including San Francisco (SFO) and Los Angeles (LAX) in the U.S., Amsterdam (AMS) in the Netherlands, and Helsinki Airport (HEL) in Finland. Neste is also expanding the availability of SAF by supplying it to various fuel marketing companies outside of its airport network.

The use of Neste’s SAF offers significant environmental benefits, with greenhouse gas emissions reduced by up to 80%* over the fuel’s life cycle compared to fossil jet fuel. Neste’s dedication to sustainability extends beyond Singapore, with ongoing modifications at its Rotterdam refinery that will increase the company’s total SAF production capability to 1.5 million tons per annum by the end of 2023. Furthermore, the expansion of the Rotterdam refinery, set for completion in the first half of 2026, will elevate Neste’s total SAF production capacity to an impressive 2.2 million tons.

Neste remains committed to driving the aviation industry towards a greener future, and with its expanded production capacity and strategic partnerships, the company is well-positioned to meet the growing demand for sustainable aviation fuel worldwide.

*) When used in neat form (i.e. unblended) and calculated with established life cycle assessment (LCA) methodologies, such as CORSIA methodology

Susanna Sieppi,
Vice President, Communications

Further information: Please contact Neste’s media service, tel. +358 800 94025 / media@neste.com (today 17 May from 5.00 a.m EET and other weekdays from 8.30 a.m. to 4.00 p.m. EET). Please subscribe to Neste’s releases at https://www.neste.com/for-media/releases-and-news/subscribe.

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Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of sustainable aviation fuel and renewable diesel and developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce their greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. Our ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. We are introducing renewable and recycled raw materials such as liquefied waste plastic as refinery raw materials. We have committed to reaching carbon-neutral production by 2035, and we will reduce the carbon emission intensity of sold products by 50% by 2040. We also have set high standards for biodiversity, human rights and supply chain. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2022, Neste’s revenue stood at EUR 25.7 billion. Read more: neste.com

SOURCE: Neste Corporation