Neste Renewable Diesel. April 2016 Dayne Delahoussaye

Transcription

1 Neste Renewable Diesel April 2016 Dayne Delahoussaye 1

2 Neste in brief 5,000 employees in 15 countries Refining capacity: bpd of petroleum products bpd of renewable diesel Revenue 15 billion Comparable operating profit 583 million 6 th place in the Global 100 list of the world s most sustainable companies Refining and marketing company focused on low-emission, highquality traffic fuels 8 September

3 We removed the Oil from our name 4

4 Neste Worldwide - operations in 14 countries Headquarters: Espoo Production: Sales and marketing: Porvoo Naantali Rotterdam Singapore Bahrain (joint venture, Neste's share 45%) Espoo Stockholm Tallinn Riga Vilnius St. Petersburg Geneva Beringen Houston Toronto Dubai Singapore 29 March

5 Cleaner solutions through the years Lead-free and sulfur-free fuels Low-sulfur marine fuel March

6 We are the world s largest producer of renewable diesel 8 September

7 And the world s largest company to produce diesel from waste and residues During the last three years we have: Turned an amount of waste weighing more than 10 times the Empire State Building into fuel. Produced enough NEXBTL to drive a car around the world 3.4 million times. Cut CO 2 emissions equivalent to what 1.3 million homes produce in a year. 8

8 NEXBTL renewable diesel 8 September

9 Neste is a world leader and pioneer in renewable diesel Neste developed and patented NEXBTL renewable diesel A fully fungible renewable hydrocarbon diesel, can be dropped in to the diesel infrastructure Annual production capacity 2.4 million tons = 815 million gallons Meets diesel specifications including ASTM D975 and CARB diesel specifications Being used neat by consumers and public and private fleets 10

10 Diverse demand for NEXBTL, as blending component and 100% use Commercial and municipal bus fleets Dump and garbage trucks Truck fleets Construction; Mining Aviation Marine Emergency generators Agricultural machinery 11

11 Low-carbon NEXBTL renewable diesel is ideal for fleet operations High performance Free of sulphur, oxygen, and aromatics. Together with a high cetane number of the fuel ensures an efficient and clean combustion. Lower operating costs Longer service and maintenance intervals than for other alternative fuels. Smaller environmental footprint Reduces greenhouse gas emissions by up to 90% in addition to sizable reductions in tailpipe emissions. Superior cold weather performance Suitable for very cold weather conditions. No matter the raw material, Neste guarantees its fuel will exceed cold temperature requirements. Long shelf life Can be stored over long periods of time with no deterioration in quality or water accumulation. Easy switch; no additional investments Fleets can switch to NEXBTL renewable diesel overnight without any conversion of vehicles or to logistics systems. 12

12 NEXBTL renewable hydrocarbon diesel is fully compatible with petroleum diesel Raw material Biodiesel Vegetable oils & waste animal fats Petroleum diesel Crude oil (mineral oil) NEXBTL Renewable diesel Vegetable oils & waste animal fats (including high free fatty acids) BTL Biomass Technology Esterification Traditional refining Hydrotreating Gasification & Fischer-Tropsch End product Ester Hydrocarbon (gasoline, jet fuel, diesel) Bio-based hydrocarbon (renewable diesel, jet fuel, bionaphta, biopropane) Bio-based hydrocarbon (renewable gasoline, jet fuel, diesel) Chemical composition O II H 3 C-O-C-R C n H 2n+2 + aromatics C n H 2n+2 C n H 2n+2 FAME = Fatty Acid Methyl Ester, conventional biodiesel RME = Rapeseed Methyl Ester, conventional biodiesel HVO = Hydrotreated Vegetable Oil, advanced biofuel i.e. renewable fuel BTL = Biomass to Liquid 13

13 Renewable diesel has lower carbon footprint compared to petroleum diesel Petroleum diesel: g* NEXBTL renewable diesel produced from waste and residues: g* *g CO2eq/MJ. Greenhouse gas emissions calculated in accordance with CARB LCFS. 14

14 Satisfied Customers 29 March

15 Californian based Propel Fuels The first retail chain in the world selling neat NEXBTL renewable diesel First fill by The Green Lady, Mary Nichols, CARB chairman 17

16 NEXBTL renewable diesel is being used by UPS's fleet operating in the USA since mid-2015 UPS is planning to use up to 46 million gallon equivalents of renewable fuels over the next three years 18

17 Google's gbuses in Silicon Valley, California are running with neat NEXBTL gbuses ferry employees from their homes in San Francisco and Oakland to Google s corporate campuses Neste s customer Golden Gate Petroleum is the distributor of the fuel 19

18 Golden Gate Petroleum switched its fleet to NEXBTL renewable diesel and became one of the first US distributors of NEXBTL in 2013 Our experience has been extremely positive in our own fleet. We have experienced zero customer complaints or issues. Pat O Keefe, Vice President, Golden Gate Petroleum 22

19 Already over 5,000 vehicles run daily on Tool Fuel s CARE Diesel (100% NEXBTL) in Austria CARE Diesel marine retail pumps in Austria and Germany first marine pumps in the world to offer NEXBTL 23

20 The City of San Francisco will leapfrog its efforts to protect the climate from harmful effects of diesel emissions by phasing out the use of petroleum diesel in the municipal fleet and replacing it with renewable diesel by the end of 2015 Neste s customer Golden Gate Petroleum was the distributor of the fuel during the trial 24

21 The City of Oakland began filling up its vehicles with NEXBTL in order to reduce the emissions of their municipal fleet Oakland operates 250 diesel-powered vehicles and equipment 230,000 gallons of NEXBTL per year Neste s customer Golden Gate Petroleum is the distributor of the fuel 25

22 City of Walnut Creek is the first city in the USA to convert its municipal fleet to renewable diesel The switch to NEXBTL in Aug 2015 will reduce city s GHG emission by more than 60 percent Operates about 60 diesel powered vehicles and equipment Neste s customer Golden Gate Petroleum is the distributor of the fuel 26

23 Neste provides 100% NEXBTL to bus company Stånga Buss in Linköping, Sweden. The fuel is used e.g. in school buses. Stånga Buss opened their filling station also to other companies and private individuals 27

24 #acrossusa Distance: Consumption: Fuel economy: Average speed: Drive time: 2507 miles 37.6 gallons 68 mpg 67 mph 37 hours Demonstrated performance: Across the USA on one tank of NEXBTL renewable diesel in June 2015 From Jacksonville, FL to Santa Monica, CA Driven by CLP Motorsports & Tanner Foust 8 September

25 Other applications 29 March

26 NEXBTL renewable diesel for off-road vehicles NEXBTL renewable diesel can be used in the construction sites to replace petroleum diesel Decreases emissions significantly as well as results cleaner air for the workers Fully fungible No retrofitting of engines No additional infrastructure No storage stability problems 30

27 NEXBTL can be used in diesel engines in various places; also when network electricity is not available Some examples where NEXBTL renewable diesel can be also used: Outdoor events e.g. concerts Mines (vehicles and power generators) Marine (professional and leisure) Off-road vehicles Racing cars 31

28 Aviation 29 March

29 Sky high standards with NEXBTL renewable aviation fuel Renewable jet fuel (HEFA) Offers airlines an easy way to lower their carbon footprint High energy content (MJ/kg), no aromatics, or sulphur Complies with ASTM D7566 Available at commercial scale Tested by Lufthansa and Boeing with excellent results 35

30 Proven high-level performance; Demonstrated on over 1,000 Lufthansa flights 1,187 Lufthansa flights tons of Neste renewable aviation fuel blend consumed (50% blend) 1500 tons reduction in CO 2 emissions 36

31 In December 2014 Boeing successfully tested 15% NEXBTL high freeze point renewable jet fuel in one engine of Boeing s 787 ecodemonstrator 37

32 Renewable raw materials 29 March

33 8 September

34 8 September

35 Flexible raw material mix NEXBTL renewable fuel products can be produced flexibly from a mix of various vegetable oils and waste and residues The products have constant high quality independent from raw material used 29 March

36 Broad range of renewable raw materials Waste animal fat from the food processing industry Waste fat from the fish processing industry Vegetable oil residues Technical corn oil Tall oil pitch Used cooking oil Crude palm oil Camelina oil Jatropha oil Rapeseed oil Soybean oil Neste also procures bio-based ethanol from the global market to be used as a bio-component in 95 E10 and 98 E5 gasoline. 29 March

37 More than 60% of our renewable feedstocks are waste and residues Renewable feedstock mix in 2014 Aiming for 100% waste and residue processing capability by % 62% Waste and residues (e.g. waste animal fat, waste fish fat, fatty acid distillates, technical corn oil) Crude palm oil, 100% certified 29 March

38 Tons Huge increase in waste and residue usage in couple of years 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , March

39 All renewable raw materials sustainably produced All of the renewable raw materials used by Neste are traced back to the plantations and production plants Traceability ensures that renewable raw materials are sustainably produced and that production has not infringed anyone s human rights or endangered rainforests or carbonrich areas Only certified crude palm oil used since March

40 Raw material research 29 March

41 Cutting-edge research Continuous research to expand renewable raw material base and further develop NEXBTL technology 70% approx. euro 40 million of R&D costs Cooperation with over 20 research institutions around the world Approx. 1,000 people working with research and engineering 29 March

42 Expanding the feedstock base Waste animal fats, waste oils, residue and side streams Biological pathways Thermo-catalytic pathways Photosynthesis Short term Long term 29 March

43 Microalgae oil one of the future raw material alternatives Algae oil is a suitable feedstock for NEXBTL renewable fuel production Not yet available on industrial scale Neste has been involved in several global research projects Commercial contingent algae oil off-take agreements with Cellana and RAE in the USA 29 March

44 International recognition for our sustainability Member since 2007/

45 Thank you Neste US Inc West Loop S # 1700 Houston, Texas Tel. 1 (713) usa@neste.com 56