We use a wide variety of sustainably-produced raw materials each year to produce our renewable products at our renewables refineries in Finland, the Netherlands and Singapore. Proportions of individual raw materials in Neste's refining vary from year to year, depending on their availability, price, and specific market requirements, for example.
An extensive portfolio of globally-sourced raw materials provides flexibility, as it allows us to respond to the needs of different markets and customers. Our proprietary NEXBTL technology enables the use of a wide variety renewable fats and oils in the production of renewable products. Our renewable products are always of premium quality, regardless of the raw materials we use in their production.
We are constantly looking into diversifying our portfolio with new raw materials. Replacing fossil oil with renewable and recycled raw materials helps to reduce crude oil dependency, greenhouse gas emissions and combat climate change.
Waste and residue raw materials at center stage
Neste has focused on waste and residue raw materials for over a decade, and in 2021, the share of waste and residues increased to 92% of Neste’s total renewable raw material inputs globally. In the mid- to longer term, Neste expects to introduce, e.g. novel vegetable oils derived from advanced, more sustainable agricultural concepts to its raw material portfolio.
All our refineries producing renewables are technically capable of running on 100% waste and residue raw materials. We reached this capability already in 2015.
Waste and residues in Neste's raw material portfolio:
- animal fat from food industry waste
- used cooking oil
- vegetable oil processing waste and residues (e.g., palm fatty acid distillate, spent bleaching earth oil, palm effluent sludge)
- fish fat from fish processing waste
- tall oil based raw materials
- technical corn oil (a residue from ethanol production)
No matter which raw materials from our extensive portfolio are used, our renewable products enable significant greenhouse gas emission reductions over their life cycle when replacing the use of fossil alternatives. For example, with Neste MY Renewable Diesel™, the GHG emissions can be reduced by as much as 75-95%* when emissions over the fuel's life cycle are compared with fossil diesel.
*) The GHG emission reduction varies depending on the region-specific legislation that provides the methodology for the calculations (e.g. EU RED II 2018/2001/EU for Europe and US California LCFS for the US), and the raw material mix used to manufacture the product for each market.
Use of conventional vegetable oils reduced, share of palm oil to 0% by 2023
Due to preferences in specific markets, we also use sustainably-produced vegetable oils, such as 100% certified and traceable palm oil in the production of renewables. Neste’s use of conventional vegetable oils is expected to be further decreased due to customers’ preferences and regulatory trends. The share of conventional vegetable oils of renewable raw materials inputs was in 2021 approximately 8%, with palm oil representing the vast majority, over 7%. Neste plans to reduce the share of conventional palm oil to 0% of its global renewable raw material inputs by the end of 2023.
Vegetable oils in Neste’s raw material portfolio:
- palm oil
- rapeseed oil
- soybean oil
- jatropha oil (limited use in a project)
- camelina oil (limited use in a project)
In the mid- to longer term we aim to introduce novel vegetable oils (NVO) from advanced agricultural concepts to our raw material portfolio. The key sustainability benefit provided by these advanced agricultural concepts is that cultivation of crops provides additional yields from degraded or pre-existing agricultural land.
Sustainability is key
We accept only sustainably-produced raw materials from carefully selected suppliers. All Neste’s products, and the raw materials we use in their production, always meet the legal sustainability requirements set by local authorities in our markets. Our suppliers' commitment to sustainability, protecting biodiversity, and respecting human rights are absolute requirements that must be met before any contract is signed.
Over the past few years, we have been strengthening our local presence in the regions where we source raw materials. It provides us with better visibility into the supply chain, enables closer engagement with our suppliers, and provides us with more control to ensure high level sustainability performance.