Neste reports refinery investments

Finland-based waste-and-residues-to-fuel producer Neste has announced it will shut down its refinery in Naantali, Finland, in mid-August 2017 to complete a plan “first introduced in 2014 to implement closer integration of the operations of the two Finnish refineries under uniform management.”

The two-month shutdown will affect the production line in Naantali, but Neste’s four production lines in Porvoo, Finland, will continue to operate, according to the company.

“With the ongoing investment program, we’re aiming for an additional margin of at least $5.50 per barrel after the ongoing strategic investments in Porvoo and Naantali are completed,” says Matti Lehmus, executive vice president of oil products at Neste. “The production structure will be revamped to decrease the importance of heavy fuel oil and to increase the proportion of more valuable products.”

After the shutdown, the Naantali production line will produce gasoline, diesel oil and special products, including solvents and bitumen, says Neste. The Naantali facility also produces vacuum gas oil for the Porvoo refinery’s production lines.

Neste says, “The multinational project will have a total of about 30 different nationalities among the contractors. The maximum workforce active at any one time will be 1,500.” The total cost of the project will be around €90 million ($106 million).

Neste bills itself as the world’s largest producer of renewable diesel refined from waste and residues, with its fuels and products formulated for the aviation and plastics industries. The company says it had net sales of €11.7 billion ($13.7 billion) in 2016. The company says wastes and residues make up 80 percent of its feedstock, including used cooking oil, animal and fish fats from the food processing industry and vegetable and corn oil processing residues.