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

Neste: ‘Pre-order the Future’ Campaign

Renewable fuels are the future of aviation

 

Keilaranta, Finland, August 12, 2016: Who wouldn’t want to see a world in which renewable jet fuel powers the planes we travel in? This dream is becoming a reality faster than you would think. Oslo airport became the world’s first airport where one can fuel any airplane taking off from its runways with renewable aviation fuel. Their environment sparing renewable fuel is produced by Neste, the world’s leading producer of waste-based renewable fuels.

As a part of their forward looking Pre-order the Future project Neste and the American spoken word artist Prince Ea visited Oslo and produced a series of inspiring films that show just how far we have come with sustainable air travel – and it’s very encouraging. Renewable fuels are no longer just the aviation industry’s vision of a more sustainable future. Prince Ea challenged airline professionals and aviation specialists with questions and received surprisingly encouraging responses that all suggest a more sustainable future for aviation.

“There is no alternative to renewable fuels for aviation. If we want to cut our emissions we have to go down that road”, explains Olav Mosvold Larsen, Senior Advisor of Corporate Strategy and Development at Avinor, Oslo.

We can become less dependent on fossil fuels and create a more sustainable future. Neste is offering people a unique opportunity to participate in the future of renewable travel with its Pre-order the Future campaign. For more information and Prince Ea’s latest videos visit the project website.

 

Renewable fuels are the future of aviation

Richard Williams is a famous spoken word artist and an Internet sensation better known as Prince Ea. The strong-minded artist is also well known for raising awareness around environmental issues through his inspiring and attention grabbing videos. Prince Ea is widely recognized for his spoken word videos that have gathered over half a billion views on Social Media in addition to over 2.5 million followers on Facebook. He is a charismatic speaker who has made several appearances at global sustainability events. Source: Neste

Source: Neste Corporation

Neste: Renewable Diesel to power County of Sacramento’s Fleet in California

Sacramento, August 11, 2016: Neste Renewable Diesel is now being used by the County of Sacramento, California. In moving to Neste Renewable Diesel, the County Sacramento joins California’s cleanest and greenest fleets that include the City of San FranciscoCity of Oakland, City of Walnut Creek, City of CarlsbadGoogle, and UPS.

In switching from petroleum diesel to Neste Renewable Diesel made from waste and residues, the County of Sacramento will reduce greenhouse gas emissions from its fleet by up to 80 percent. The County estimates that it will reduce greenhouses gases by approximately eight thousand tons annually. In addition, the use of Neste Renewable Diesel will reduce tailpipe emissions and so will contribute to improving the local air quality in Sacramento. Sacramento will use Neste Renewable Diesel in a range of heavy-duty vehicles including more than 400 municipal public works and specialty vehicles.

“Many government agencies and private corporations worldwide are now looking for ways to reduce emissions and carbon footprint. In the United States the State of California is leading the way. Neste Renewable Diesel is a solution to reduce both greenhouse gas emissions and tailpipe emissions. Switching to Neste Renewable Diesel does not require any additional investments on infrastructure or engine modifications. Thus, fleets can switch to renewable diesel overnight”, says Kaisa Hietala, Executive Vice President, Renewable Products, Neste Corporation.

Renewable Diesel

Using Neste’s Renewable Diesel the County of Sacramento will reduce greenhouse gas emissions from its fleet by up to 80 percent

“It’s our privilege to help the California’s state capitol county, Sacramento, become more sustainable. We want to give public and private fleets, as well as consumers, options to make responsible choices”, continues Hietala.

“Sacramento County is proud to be recognized among the leading and most sustainable public fleets in the country. Migrating to Neste Renewable Diesel provides us immediate huge gains in carbon emissions reduction that we could not otherwise achieve without significantly increased investments in alternative fueled vehicles and infrastructure”, says Keith Leech, Chief, Fleet Division & Parking, Sacramento County.

Neste is the world’s leading producer of renewable diesel with an annual production capacity of more than 2.4 million tons. The company is also the world’s largest provider of fuel from waste and residues. Neste has received recognition in the Dow Jones Sustainability World Index and the Global 100 list of the world’s most sustainable companies.

Source: Neste Corporation

Alaska Flies on Gevo’s Renewable Alcohol to Jet Fuel

Biofuel-powered flights demonstrate new, scalable aviation fuel alternative

Seattle, June 7, 2016: The skies became a little greener today after two Alaska Airlines jets departed the Emerald City (Seattle) fueled by the first alcohol-to-jet fuel (ATJ) made from sustainable U.S. corn. The two Alaska Airlines flights departed today with Gevo, Inc.  fuel and flew from Seattle to San Francisco International Airport and Ronald Reagan Washington National Airport.

“Alaska is committed to doing its part to reduce its carbon emissions. Advancing the use of alternative jet fuels is a key part of our emission reduction strategy,” said Joseph Sprague, Alaska Airlines’ senior vice president of communications and external relations. “Gevo’s jet fuel product is an important step forward, in that it has the potential to be scalable and cost effective, without sacrificing performance.”
While the 1,500 gallons of biofuel used on these flights have a minimal impact to Alaska Airlines’ overall greenhouse gas emissions, if the airline were able to replace 20 percent of its entire fuel supply at Sea-Tac Airport, it would reduce greenhouse gas emissions by about 142,000 metric tons of CO2. This is equivalent to taking approximately 30,000 passenger vehicles off the road for one year.

Alaska estimates the 20 percent biofuel blend it is using for the two flights will reduce greenhouse gas (GHG) emissions by an estimated 50 percent. The demonstration flights mark the first biofuel produced from a new feedstock to be certified and approved by ASTM International, the industry’s fuel standards association, since 2011. Additionally, today’s flights are a successful step toward the production of new fuels that will help airlines to reduce their greenhouse gas emissions. Gevo’s production process converts bio-based isobutanol into an alcohol-to-jet synthetic paraffinic kerosene (ATJ-SPK) fuel.

When compared to other fuel options, Gevo believes that its renewable ATJ has the potential to offer benefits to operating cost, capital cost, feedstock availability and scalability, and will translate across geographies.
“Flying a commercial flight with our ATJ made from renewable resources has been a vision of ours for many years, and it has taken many years of work to get this far,” said Gevo CEO Pat Gruber. “We believe our technology has the potential to be the lowest cost, renewable carbon-based jet fuel, given the efficiency of our technology. We look forward to moving forward with Alaska, and others in the airline industry, to make renewable jet fuel widely successful as a product that substitutes for fossil fuels, and ultimately helps to reduce carbon emissions.”

Renewable fuel

The renewable fuel is made from sustainable corn grown and harvested by farmers who incorporate sustainable best practices from seed to harvest, including David Kolsrud of The Funding Farm. Using advanced farming techniques to maximize corn production and minimize the use of water, fertilizers, pesticides and herbicides, Kolsrud began low carbon farming at his farm in Brandon, South Dakota in 2010. “I grow non-edible field corn and sell it to Gevo, which separates the nutritional protein portion of the corn for animal feed and then converts the starch from the kernel to isobutanol, which is then converted to jet fuel,” said Kolsrud. “This practice is a game-changer for traditional farmers like me, as this allows us to extend the use of our crop and create new jobs that frankly didn’t exist six years ago.”

Alaska Airlines has been a leader in seeking more sustainable fuels and these flights are part of the company’s long-term commitment to its sustainability strategy. The Seattle-based company was the first U.S. airline to fly multiple commercial passenger flights using a biofuel from used cooking oil. The carrier flew 75 flights between Seattle and Washington, D.C. and Seattle and Portland in November 2011.

Additionally, Alaska Airlines is teaming up with the Washington State University-led Northwest Advanced Renewables Alliance (NARA) to advance the production and use of alternative jet fuel made from forest residuals, the tree limbs and branches that remain after a forest harvest. In the coming months, Alaska will fly a demonstration flight using 1,000 gallons of Gevo’s ATJ being produced by the NARA team and its many partners.

Alaska

Alaska has set an ambitious goal of using sustainable aviation biofuel on all flights at one or more of its primary airports by 2020. In a step toward meeting this milestone, Alaska is collaborating with Boeing and the Port of Seattle on a Biofuel Infrastructure Feasibility Study for Seattle-Tacoma International Airport. Read more about Alaska’s sustainability efforts at alaskaair.com/sustainability.

Source: Alaska Airlines

EBACE: Gulfstream G450 and G550 Cross Atlantic on Renewable Jetfuel

Savannah, Georgia, May 23, 2016: Gulfstream Aerospace Corp. today announced that the Gulfstream corporate jets G450 and G550 flew from Savannah to Geneva on a renewable fuel blend to join Gulfstream’s static display at the 2016 European Business Aviation Convention & Exhibition (EBACE).

In addition to the G450 and G550 flights to EBACE, all of Gulfstream’s Savannah-based demonstration aircraft and the G500 flight-test fleet have flown on the renewable fuel blend. “At Gulfstream, the foundation of our business is delivering on our promises and setting new standards for the industry,” said Mark Burns, president, Gulfstream. “In 2011, the G450 was the first business jet to cross the Atlantic using biofuels. The G450 and G550 flights to Geneva are the first transatlantic flights made using our own renewable fuel supply and mark an important milestone in our mission to practice sustainability throughout every aspect of our business.”

Gulfstream established a three-year agreement with its fuel supplier, World Fuel Services, in 2015 for a consistent supply of renewable fuels for daily flight operations in Savannah. The fuel, produced by AltAir, is a blend of low-carbon, drop-in renewable fuel and Jet-A. It provides the same performance as conventional, petroleum-based jet fuel and requires no changes to factory-standard engines or aircraft. Each gallon of renewable fuel burned is expected to achieve a more-than-50-percent reduction in greenhouse gas emissions, relative to petroleum-based jet fuel, on a lifecycle basis.

Gulfstream Cross Atlantic on Renewable Jetfuel

Gulfstream’s supply of low-carbon, drop-in replacement fuel provided by AltAir and World Fuel Services is derived from agricultural waste and is certified to meet the same industry specifications as petroleum Jet-A.

Source: Gulfstream

Australia: New Approach to Renewable Energy

IASA: Nachhaltige Luftfahrt - Sustainable Aviation

Prime Minister Turnbull: ambitious but achievable

 

March 23, 2016: As announced by Prime Minister Malcolm Turnbull, the Australian Government is establishing a A $1 billion Clean Energy Innovation Fund to support emerging technologies make the leap from demonstration to commercial deployment. The Australian government claims that this will drive innovation and create the jobs of the future, while delivering a financial benefit from the investment of public money. The A $1 billion Clean Energy Innovation Fund will be jointly managed by the Clean Energy Finance Corporation (CEFC) and the Australian Renewable Energy Agency (ARENA), drawing on their complementary experience and expertise. It will provide both debt and equity for clean energy projects.

Prime Minister Turnbull in his statement: “The Government will retain and reinvigorate the Clean Energy Finance Corporation and the Australian Renewable Energy Agency as part of our strong commitment to supporting jobs and innovation through investment in clean and renewable energy in Australia. The refocused agencies will work together to provide capital investment in Australian businesses and emerging clean energy technologies.

We are promoting innovation and new economic opportunities, enhancing our productivity, protecting our environment and reducing emissions to tackle climate change.

An example of a project could be a large scale solar facility with storage in Port Augusta.

By offering innovative equity and debt products, the Clean Energy Innovation Fund can accelerate the availability of new technologies to transform the energy market, and deliver better value for taxpayers.

There is growing maturity in the clean energy market, but early stage clean energy projects can have trouble growing to the size and maturity needed to attract private equity. We will help plug this investment gap.

The Clean Energy Innovation Fund will target projects such as large-scale solar with storage, off-shore energy, biofuels and smart grids.

Clean energy is central to the Government’s strategy to address climate change and meet our emissions reduction targets.

We are committed to supporting the development, demonstration and deployment of renewable technologies – which will help transition Australia’s energy sector to low emissions over the course of the century.

ARENA will continue to manage its existing portfolio of grants and deliver the announced $100 million large-scale solar round, and will be given an expanded focus beyond renewable energy to enable energy efficiency and low emissions technology.

This will provide greater alignment with the CEFC and ensure that ARENA is able to support the full spectrum of emerging clean energy technology options.

Once the $100 million large-scale solar round is complete, ARENA will move from a grant based role to predominantly a debt and equity basis under the Clean Energy Innovation Fund.

The $1 billion Clean Energy Innovation Fund will be established from within the CEFC’s A $10 billion allocation. This Fund will make available $100 million a year for ten years.

The changes announced work hand in hand with the Emissions Reduction Fund, the Renewable Energy Target, the National Energy Productivity Plan and our broader support for clean energy to reduce emissions and drive productivity across the energy sector.

Our strong suite of climate change policies will work to achieve our commitment to reduce emissions by 26 to 28 per cent by 2030. This target is ambitious but achievable.”

Source: Australian Government