Neste: Business Environment Outlook Published

Climate Change Sustainable Aviation

‘Taking Action on Climate Change’ examines changes in energy and transport markets

 
Keilaranta, October 5, 2017: Neste has published a business environment outlook called Taking Action on Climate Change. It discusses key changes taking place in the energy, transport and chemicals markets. As global commitment to tackle climate change requires major efforts to reduce emissions, the use of fossil raw materials will inevitably need to decline in all of these sectors. Neste has risen to become the global leader in renewable diesel, and realizes that there is significant potential for renewable solutions not only in the road transport sector but also in aviation and the plastics industries.
 
Electric vehicles are on the way – what is Neste’s response?
Neste estimates that by 2030, approximately ten percent of the global car fleet will be electric cars. Despite the fact that electric vehicles are expected to rapidly become more common for passenger transport, Neste believes that renewable diesel will remain a competitive solution for reducing transport emissions. By 2021, renewable diesel demand is expected to have doubled in North America, the Nordic countries and Europe.
“The increase of electric cars is a good thing, because we need every possible solution to combat climate change,” says Neste’s President & CEO, Matti Lievonen. “Renewable diesel is also needed, since for the time being it’s one of the most cost-efficient ways to reduce climate emissions, and can do so by as much as 90 percent. Many cities and businesses in Finland, Sweden and also in California have opted for 100 percent Neste MY Renewable Diesel for this reason.”
To achieve Finland’s planned 50 percent emission reduction target by 2030, both biofuels and electric vehicles using emission-free power will be needed in abundance.
 
What is the future of diesel vehicles and diesel fuel?
Some major cities have announced bans or restrictions on diesel vehicles to tackle air quality problems. Due to emissions cheating, the reputation of diesel cars has suffered greatly. Neste believes that the problem of emissions from diesel vehicles can be solved, and that diesel technology will remain competitive for a long time to come.
“Engine standards are evolving, and the automotive industry is committed to important measures to achieve significantly lower tailpipe emissions. One of the ways to further reduce the heavy traffic emissions is to choose 100% biofuels, such as Neste MY Renewable Diesel,” says Lievonen.
In Europe, demand for diesel and other fuels that are classified as middle distillates is expected to grow by more than 10 million tons by 2025. One part of this growth is being driven by the increase in demand for heavy transportation and air traffic. About 70 percent of diesel use is accounted for by heavy transportation.
In the coming years, demand for middle distillates, like diesel, will also increase significantly in shipping, where the IMO’s (International Maritime Organization) global sulfur regulation, which comes into force in 2020, will limit the sulfur content in marine fuels to below 0.5 percent. This means that much of the shipping industry will switch from heavy fuel oil to low-sulfur marine fuels. Neste offers ship owners low-sulfur marine fuels that meet the new emission limits.
 
Renewable solutions for air traffic are on the way
The aviation industry, which consumes rapidly growing volumes of fuel, is also opening up to renewable jet fuels. Legislation to support this change is being developed in several regions, including the EU, Norway, and California. 
“Renewable fuels are seen as an important solution for reducing emissions from air transport. Solutions are needed because at the same time as the aviation industry is committed to reducing its carbon dioxide (CO2) emissions, demand for aviation fuel is projected to grow globally by 100 million tons over the next ten years,” says Lievonen.
Neste is a global pioneer in renewable air transport solutions, as the Neste Green Hub solution that the company has developed promotes the use of renewable aviation fuel with the aid of airport cooperation. The first example of this is the recently announced cooperation with Geneva Airport, and discussions are also ongoing on ten other cooperation projects.
 
First commercial delivery of bioplastics in 2018
Neste is also developing new business operations from bioplastics, the raw materials for which are the renewable products manufactured by Neste. The bioplastics market is expected to grow by more than 40 percent by 2021. About 80 percent of this growth is expected to come from durable biobased plastics, such as Neste’s bioplastics solution, the demand for which is growing faster than for biodegradable plastics. Neste’s bioplastic solution is easy to use, because the properties of the plastics produced are exactly the same in production, use and recycling.
“Our renewable products have already been used in bioplastics production, and our goal is to make the first commercial delivery in the first half of 2018. We are working closely with our customers and plastic manufacturers, and discussions are underway with ten global brands,” says Lievonen.
By 2020, Neste targets to have 20% of its renewable business sales volume from renewable jet fuel, renewable chemicals and bio-based plastics.
Climate Change Sustainable Aviation
 
Source: Neste Corporation

Stuttgart Airport:  C.A.R.E. Diesel Complements Previous Efforts for Climate Protection

sustainable aviation

Ground fleet vehicles fuelled by ‘Neste MY Renewable Diesel’ will improve carbon footprint

Stuttgart, September 21, 2017: Stuttgart Airport has started using Neste MY Renewable Diesel™ as a solution to reduce its CO2 emissions and as part of the climate program of Baden-Württemberg’s state airport in Germany. By switching to premium-quality “drop-in” renewable diesel in its diesel-powered ground fleet, the airport is able to significantly reduce its carbon footprint. All the ground fleet vehicles which are not electrified, such as the trucks of the airport fire department and winter service equipment, will be using Neste MY Renewable Diesel.

Using Neste MY Renewable Diesel, produced from renewable raw materials, can cut greenhouse gas emissions by up to 90% over the lifecycle of the product compared to conventional fossil diesel. Its use can additionally reduce levels of local emissions that have a negative impact on air quality. The fuel outperforms both conventional biodiesel (Fatty Acid Methyl Ester i.e. FAME) and even conventional fossil diesel in terms of engine performance and environmental impact.

“The state airport is the first transportation company in Baden-Württemberg that extensively fuels its vehicle fleet with renewable diesel. The climate-friendly fuel adds to the targeted support of e-mobility and alternative drives on the ground and in the air. This is another important step for climate and health protection”, says Winfried Hermann, Minister of Transport of Baden-Württemberg and Board Chairman of Flughafen Stuttgart GmbH.

Neste MY Renewable Diesel is supplied locally with the brand name C.A.R.E. Diesel® by Neste’s distribution partner Tool Fuel Service GmbH, a company specialized in the distribution of renewable fuel in Germany.

“Our goal of running the entire airport climate-neutrally by 2050 is a very ambitious task. The use of C.A.R.E. Diesel complements our previous efforts for climate protection and our apron staff benefits from it as well”, says Walter Schoefer, Management Director of Flughafen Stuttgart GmbH.

sustainable aviation

Stuttgart Airport ground fleet vehicles fuelled by Neste MY Renewable Diesel Photo: Stuttgart Airport

Source: Neste

Neste’s Matti Lievonen awarded Honorary Doctorate of Technology

Honoring the successful promotion of clean transportation fuels

Keilaranta, Finland, October 7, 2016: Matti Lievonen, President and CEO of Neste, has been awarded Honorary Doctorate of Technology by the Aalto University Schools of Technology at the joint Ceremonial Conferment on 7 October 2016.
According to Aalto University, Matti Lievonen has successfully promoted the development of clean transportation fuels as well as the nationally important Finnish bioeconomy strategy in developing renewable transportation fuels. Renewable biofuels developed in Finland are proved to be competitive in both technology and business at the international level. The cooperation between Neste and the Aalto University School of Chemical Technologyhttps://hugin.info/133386/I/2047587/110439.jpg has played an important role in this work.
“I highly appreciate the Honorary Doctorate conferred on me. Chemistry and its applications offer endless possibilities for innovation and creation of new business. Neste Renewable Diesel is a good example and I know there is more to come”, Matti Lievonen says.  
Neste's Matti Lievonen awarded Honorary Doctorate of Technology

Matti Lievonen, President and CEO of Neste Corporation

Source: Neste
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