uncategorized · 9/2/2013

Neste Oil and Raisioagro to research the potential of straw as a renewable fuel feedstock

Neste Oil Corporation
Press release
2 September 2013 at 2 p.m. (EET)

Neste Oil and Raisioagro to research the potential of straw as a renewable fuel feedstock

Neste Oil and Raisioagro have launched a research project to investigate the potential of straw as a raw material for producing renewable diesel. Large quantities of waste straw are produced as agricultural residue in Finland and elsewhere, and only a small proportion of this is currently used.

The project will study whether a logistically effective and efficient, large-scale straw harvesting chain could be created in Finland. The researchers will also look at the storability of straw for use as an industrial input year-round. The project will be carried out by TTS.

Microbial oil technology developed by Neste Oil enables straw to be used as a feedstock for producing NExBTL renewable diesel. Neste Oil has tested processing of  straw for some years and pilot-scale microbial oil production trials were started last year when Europe's first microbial oil pilot plant was commissioned at Porvoo.

"Microbial oil produced from industrial and agricultural residues, such as straw, is one of our potential future feedstocks for producing NExBTL renewable diesel," says Lars Peter Lindfors, Neste Oil's Senior Vice President, Technology. "We have already tested the use of straw for producing microbial oil at our pilot plant at Porvoo and the results have been promising. This latest research project will give us valuable new information on the true potential straw offers as a feedstock for producing renewable fuel in Finland and on the logistics chain needed to supply straw in the quantity required for an industrial process like ours."

Neste Oil is currently the world's only biofuel producer capable of producing premium-quality renewable fuel on an industrial scale from more than 10 different feedstocks. The company is committed to further extending its feedstock base in renewables, and to increasing its use of waste and residues in particular. Neste Oil currently invests around EUR 40 million in R&D annually, the bulk of which goes on research into renewable feedstocks and renewable refining technology.

Using straw would strengthen the rural economy

Raisoagro is interested in straw research because developing the uses of straw opens up a valuable opportunity for strengthening cereal and livestock farming in Finland. Although there is some potential to use existing farm machinery more effectively in this area, extensive straw usage would call for new investments. Greater sustainable usage and production of renewable energy from straw would improve agriculture's environmental balance and benefit society in the future.

Developments in technology and the growing size of today's farms, for example, together with farmers' shift to more specialized production, have already improved the potential for greater use of straw. The goal of the new research project is to investigate the practical questions involved in collecting straw under different conditions, how efficiently it can be done, and various quality-related issues. The amount of interest among farmers and contractors in making greater use of straw will also be looked at.

Neste Oil Corporation
Kaisa Lipponen
Director, Corporate Communications

Further information:
Lars Peter Lindfors, Senior Vice President, Technology, Neste Oil, tel. +358 (0)50 458 3605
Pekka Heikkilä, Business Development Director, Raisioagro Ltd, tel. +358 (0)50 517 8035

Photos for media use attached.

Neste Oil in brief:
Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company produces a comprehensive range of major petroleum products and is the world's leading supplier of renewable diesel. Neste Oil had net sales of EUR 17.9 billion in 2012 and employs around 5,000 people, and is listed on NASDAQ OMX Helsinki.

Neste Oil is included in the Dow Jones Sustainability World Index and the Ethibel Pioneer Investment Register, and has featured in The Global 100 list of the world's most sustainable corporations for many years. Forest Footprint Disclosure (FFD) has ranked Neste Oil as one of the best performers in the oil & gas sector.

Raisioagro Ltd. in brief:
Raisioagro is a modern agritrader and a familiar and reliable partner for its thousands of customers. In addition to high-quality feeds and expertise in livestock feeding and crop farming, Raisioagro provides producers with a high-quality range of other inputs and farming supplies. The latest innovation of Raisioagro is Benemilk cattle feed that has been proven improve the quality and yield of milk. Raisioagro is part of Raisio Group.

TTS in brief:
TTS is a research, development, and training organization that trains around 7,000 students annually in a variety of fields. In addition to training, TTS runs around 100 R&D projects annually aimed at improving the effectiveness, efficiency, and productivity of working methods. Agricultural-related research is a particular priority for TTS.