The biodiesel developed by Neste Oil and produced from animal fats and plant oils outdoes its rivals with its properties at low temperatures. Biodiesel is expected to be the new driving force behind the company's business.

Biodiesel, which is produced from a completely organic material, is not new as an invention. It has been possible to produce it throughout the world, but there has been room for improvement, particularly in its properties at low temperatures.

"The biodiesel that is generally used at present starts to become turbid when the thermometer falls below zero. The qualities of the traditional biodiesel also vary according to the raw material. Neste Oil's diesel is uniformally good," says development manager Raimo Linnaila.

Purchase price decisive

The production of biodiesel is based on the Biomass to Liquid technology (NExBTL) developed by Neste Oil, which can be used to produce high-grade biodiesel from renewable raw materials.

With a new production plant that will be completed in 2007, Neste Oil will be producing 170,000 tonnes of biodiesel at Porvoo annually. About 200,000 tonnes of raw material will be needed for this amount.

"Technically speaking, we can exploit any plant oils or animal fats whatsoever. The factor guiding the purchase of the raw material is the price. Animal fats from domestic raw materials and rape-seed oil are the options with the greatest potential," Linnaila says.

Strong growth continues

The synthetic biodiesel that is produced with the NExBTL technology is a biofuel in accordance with the EU directive and can be expected to be given the same tax concessions as the biodiesels that are on the market at present. The concessions are aimed at increasing the production of biofuels in Europe.

The target in the EU's biofuel directive is 5.75 per cent by the end of 2010. "The use of biodiesel has increased in Europe this decade on average by 35 per cent a year. We're expecting the growth to be just as strong up until the end of the decade."

"With the rise in the price of crude oil and an increase in the risks or interruptions to its supply, the need for alternative fuels will grow," Linnaila believes.

Best of the biofuels

In terms of the environment, the most important point about biodiesel is the reduction in carbon dioxide emissions. Linnaila says that NExBTL is the best of the biofuels in this respect.

Even compared with the diesels giving off the least emissions, the exhaust fume emissions caused by NExBTL are the lowest in every respect, as tests have proved. In addition, the concentrated usage of animal fats on a large scale reduces having to take them, for example, to landfill sites.

It is hoped that biodiesel will be one driving force for Neste Oil's clean fuels product family. The company is investing a total of 100 million euros in product development and the construction of the first commercial unit.

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Emissions from carbon dioxide, the most important of the greenhouse gases, are reduced by a third, when NExBTL replaces fossil diesel.