Under the terms of the agreement, Neste Oil will supply approximately 160,000 tons of biopropane over a four-year period.
SHV Energy is planning to market the biopropane in several European markets to replace the existing fossil fuels for significant carbon savings and also begun negotiations with customers in France, Germany, Benelux, Scandinavia and the UK.
SHV Energy management board member Fulco van Lede said: "Biopropane means this option will become even cleaner. In use, it is identical to conventional propane and can be blended and used by all existing appliances suitable for use with propane.
"In addition, biopropane is a great opportunity for SHV Energy to lead the LPG business towards a more sustainable future."
Neste Oil Renewable Products executive vice president Kaisa Hietala said: "This agreement ensures that it will find customers who can most benefit from what it has to offer and its unique environmental properties."
Neste Oil’s Rotterdam refinery uses various bio-based inputs and waste to primarily produce premium-quality renewable diesel.
Nest Oil invested €60m to install a new unit at the refinery to produce and store biopropane.
The unit, which will purify and separate biopropane from the sidestream gases produced by the refinery, will begin biopropane production at the end of 2016.
