Sourcing renewable raw materials

Neste uses renewable raw materials that fully meet the requirements specified in the legislation in our key markets (e.g. EU RED or US RFS 2). We select our renewable raw material suppliers carefully and monitor their performance. All our renewable raw materials are traceable as required by the legislation in our key markets.

Globally sourced

We source renewable raw materials globally, from nearly 70 countries and over 500 suppliers. We are currently primarily sourcing waste and residue raw materials and continue our efforts to capture a greater share and wider scope of waste and residue oils and fats.

In 2018, we acquired 51% of the shares of Demeter, one of the largest animal fat waste traders in Europe.
In 2019, we opened an office in Shanghai and another in Melbourne focusing on renewable raw material sourcing.
In 2020, we acquired 100% of Mahoney Environmental, a collector and recycler of used cooking oil in the United States, and its affiliated entities. This supports our efforts to gain access to a substantial volume of used cooking oil and to grow our raw material supply chain in North America.
In 2021, we closed the acquisition of Agri Trading, one of the largest independent renewable waste and residue fat and oil traders in the United States.
In 2022, we acquired Walco Foods (renamed Neste Walco Limited), an Irish trader of animal fats.
In 2023, we acquired a used cooking oil collection and aggregation business from Crimson Renewable Energy in the US.
In 2023 we increased our ownership of Neste Demeter to 80% and agreed to acquire the remaining shares over the next few years.

We have strengthened our sourcing capability through our global raw material aggregation network.

Traceability

All our renewable raw materials are traceable as required by the legislation in our key markets (e.g. EU RED or US RFS2).

More information about our palm fatty acid distillate (PFAD) supply chain can be found on Neste's PFAD dashboard.

PFAD residue from palm oil refining

PFAD dashboard

More about sourcing

Sustainability due diligence

Knowing the origin of our raw materials is a fundamental supplier requirement. Where possible, our aim is to gain visibility throughout the entire raw material supply chain, including our supplier’s suppliers.

For suppliers

Neste is a global buyer of used cooking oil (UCO), animal fat waste and a variety of other renewable raw materials.