Neste has taken a final investment decision (FID) to invest around €1.9bn to expand the renewable products production capacity of its Rotterdam refinery in the Netherlands.
Currently, the refinery has a capacity of 1.4 million tons per annum of renewable products. This will be increased to 2.7 million tons per annum by installing a new production unit.
Neste said that the production capability of sustainable aviation fuel (SAF) alone will be 1.2 million tons per annum.
The Finnish oil refining and marketing company aims to begin operations at the new renewable products unit during the first half of 2026.
Neste president and CEO Matti Lehmus said: “The investment in the expansion of our Rotterdam refinery strengthens our global leading position in renewable products.
“It also marks an important step in ensuring our future competitiveness and our renewables’ growth strategy execution as it will bring a substantial amount of renewable diesel, SAF and renewable feedstock for polymers and chemicals to our sustainability-focused customers.”
Located in the Maasvlakte area in the Port of Rotterdam, the refinery has been operating since 2011.
Neste uses its proprietary NEXBTL technology to convert a range of renewable fats and oils into renewable products like fuels and feedstock for the production of polymers and chemicals.
Presently, the Finnish firm has a renewable products production capacity of 3.3 million tons per annum.
The company’s ongoing expansion project in Singapore and the joint venture with Marathon Petroleum in Martinez, California will ramp up its total production capacity of renewable products to 5.5 million tons by the end of next year.
Once completed, the Rotterdam refinery expansion project will further grow Neste’s overall production capacity of renewable products to 6.8 million tons by the end of 2026.
Earlier this year, the company entered into a joint venture agreement with Marathon Petroleum for the Martinez renewable fuels project in the US. Neste’s investment share in the project is expected to be $1bn.