The use of biofuels is expected to increase rapidly on all developed markets in the next few years. Neste Oil Corporation will be building the world’s biggest production plant for producing diesel from renewable raw materials.

The construction of Neste Oil’s plant will begin during the spring and is scheduled for completion at the end of 2010.  Singapore is the world’s third-biggest oil-refining centre and at the same time a central location for feedstock flows and logistics.

“Singapore is excellently placed for development as Asia’s centre for biofuels. Singapore is also a signatory to the Kyoto Protocol and committed to reducing greenhouse gas emissions,” says Executive Vice President Jarmo Honkamaa, giving reasons for the plant’s location.

Reduction in emissions

The production plant is based on the NExBTL technology developed by Neste Oil. The first plant based on this technology was completed at Neste Oil’s Porvoo refinery in Finland in the spring of 2007 and a second is due to come on stream in 2009.

The NExBTL technology is the first commercial new-generation biodiesel technology. It enables the use of any plant oil or animal fat as the raw material. The end product can be used, as such, in existing vehicles and be distributed in existing logistics systems.

Honkamaa says that the environmental qualities of the NExBTL diesel are good. “When raw materials produced in accordance with the principles of sustainable development are used, the total greenhouse emissions calculated over the life cycle are 40 to 60 per cent lower than for conventional diesel.”

NExBTL diesel also reduces exhaust fume emissions. Various local emissions, such as fine particles and nitrogen emissions, are lowered considerably.

Outside the food chain

The main raw material that will be used at the Singapore plant will be certified palm oil, but in time there will be several other raw materials.

“In the future we will have to reach the point where the raw material will come from outside the food chain. We’re involved in many projects in which these options are being developed,” Honkamaa says.

The markets for biodiesel are principally in Europe, but elsewhere, such as in Japan and the USA, interest has been expressed in the product. Interest is also creating other business owned by others alongside the plant.

“The existence of our plant is laying the ground for other players. The aim is that everything should be almost emission-free. What to somebody else is a by-product or waste, to others would be a raw material,” Honkamaa says.

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Neste Oil is investing 550 million euros in the Singapore plant. Its capacity is planned at 800,000 tonnes of diesel a year. (Photo: Biodiesel plant in Porvoo)