Neste to acquire Mahoney Environmental to strengthen its growth strategy and position in renewable raw material sourcing
Neste Corporation, Press Release, 10 March 2020 at 9.55 p.m. (EET)
Neste, the world's leading producer of renewable diesel and sustainable aviation fuel produced from waste and residue raw materials, has agreed to acquire 100% of Mahoney Environmental (Mahoney), a collector and recycler of used cooking oil in the United States, and its affiliated entities. The transaction is subject to the fulfillment of customary closing conditions and regulatory approval.
“This is another important step for Neste in the execution of our growth strategy. With this acquisition we will gain access to a substantial volume of used cooking oil as well as a platform to grow our raw material supply chain in North America,” says Peter Vanacker, President and CEO of Neste.
The transaction supports Neste in its effort to build a global waste and residue raw material platform that can keep pace with the world’s growing demand for renewable products. It will also enhance Neste’s competitiveness in the global waste and residue raw material market.
Used cooking oil is one of more than 10 different types of feedstock that Neste can use to produce renewable diesel, sustainable aviation fuel and raw materials for renewable polymers. An extensive raw material base provides flexibility, allowing Neste to respond to the needs of different markets and customers. The end product is always of premium quality, regardless of the type of renewable raw material used in production.
Mahoney collects used cooking oil from restaurants, hotels, sports stadiums and airports. The company pretreats the leftover oil, creating a reliable sustainable component that can be turned into renewable products.
“This is an important part of our growth strategy in North America,” says Jeremy Baines, President, Neste US, Inc. “In addition, we are building more commercial fueling sites, expanding our storage and logistics footprint, and distributing sustainable aviation fuel.”
Neste is ranked as the world’s 3rd most sustainable company according to the Global 100 Index. The company’s premium renewable products can enable forward thinking businesses and cities to phase out fossil fuels, reduce their carbon footprint and achieve their sustainability targets.
Notes to Editors
- In 2019, renewable products refined by Neste helped reduce greenhouse gas emissions globally by 9.6 million tonnes, which is the equivalent of taking 3.5 million passenger cars off the road for one year.
- Neste operates renewable product refineries in Singapore, Rotterdam in the Netherlands, and Porvoo in Finland. These facilities can process a wide-range of sustainably sourced, 100% renewable raw materials, and keep customers around the world supplied with Neste’s premium renewable products.
- Neste announced a $1.54 billion expansion at its renewable products refinery in Singapore, which will significantly increase production capacity of Neste MY Renewable Diesel and sustainable aviation fuel.
- Mahoney Environmental’s unique, integrated business model enables the company to provide an unparalleled customer value proposition. Neste will support all parts of Mahoney’s differentiated service model, which includes cooking oil equipment installation and design, fresh oil delivery and grease trap cleaning services.
Vice President, Communications (act.)
Further information: Please contact Neste’s media service, tel. +358 50 458 5076, email@example.com (weekdays from 8.30 a.m. to 4.00 p.m. EET).
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2019, Neste's revenue stood at EUR 15.8 billion. In 2020, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Read more: neste.com
About Mahoney Environmental
Mahoney Environmental is a licensed EPA recycler and a leader in used cooking oil collection and recycling. Since 1953, Mahoney Environmental has been recycling used cooking oil, grease trap material, and other waste products into materials that are sustainably transformed into products such as animal feed and alternative biofuels. The company engineers the most reliable equipment to make back-of-the-house food service operations more efficient and provide the highest level of service. Mahoney Environmental also provides grease trap services to food service operators nationwide, servicing national and regional chains, as well as independent restaurants throughout the United States. Fresh oil programs in select markets are also available through Mahoney Environmental.