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Neste’s Singapore Refinery Facility Completed

Neste’s Singapore Refinery Facility Completed

Neste has completed its Singapore refinery expansion project, marking a crucial step in its global strategy to meet the growing demand for sustainable aviation fuel (SAF) in the Asia-Pacific region.

Facing increasing demand for SAF in the region, the Finnish energy giant’s USD$1.7 billion expansion project has doubled its production capacity in Singapore to 2.6 million tons of fuel per year, including up to 1 million tons of SAF. Apart from the increasing production scale, the facility will also enhance raw material pre-treatment capacity, making it possible to process more waste and residue raw materials.

The expansion has taken Neste, the world’s largest SAF producer, four years regardless of the challenges posed by the global pandemic.

Behind the major expansion initiative, Matti Lehmus, President and CEO of Neste, highlighted Singapore’s logistical connectivity and world-class education system as key factors in the project’s success. Singapore’s strategic location at the heart of Southeast Asia enables efficient transportation of raw materials and supports the availability of future talents, according to Lehmus.

Singapore, a prominent aviation hub in the Asia-Pacific region, will also benefit from Neste’s integrated SAF supply chain to Singapore Changi Airport, where the product is made available to commercial airlines, as well as business aviation.

“The neat SAF is produced at our refinery located in the Tuas area of Singapore, then blended together with conventional fossil jet fuel and certified to meet jet fuel specifications at the blending terminal in Singapore, and finally delivered to our customers at Changi Airport,” said Sami Jauhiainen, acting Executive Vice President for the Renewable Aviation business unit of Neste.

To further facilitate the use of SAF, Neste has agreed to acquire a stake in Changi Airport Fuel Hydrant Installation Company and has become a minority shareholder.

SAF plays a vital role in reducing greenhouse gas emissions, with a potential 80% reduction over the fuel’s life cycle compared to fossil jet fuel.

Neste also has a refinery facility in Rotterdam, the second largest city in the Netherlands, which is undergoing modifications after being shut down temporarily due to a fire in 2022. These modifications will further expand Neste’s SAF production capability, supporting its goal of reaching 2.2 million tons of biofuel per year by the first half of 2026.

The aviation industry has identified SAF as the most promising near-term technology to reduce greenhouse gas emissions. The SAF market, according to MarketsandMarkets, is projected to grow immensely from USD$219 million in 2021 to USD$15,716 million by 2030, at a Compound Annual Growth Rate of 60%. 

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