Neste MY Renewable Diesel. October 2017

Transcription

1 Neste MY Renewable Diesel October 2017

2 Safe Harbor Statement The following information contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or our future financial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks, uncertainties and other factors that may cause Neste Corporation s or its businesses actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward looking statements. In some cases, such forward-looking statements can be identified by terminology such as may, will, could, would, should, expect, plan, anticipate, intend, believe, estimate, predict, potential, or continue, or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. All forward-looking statements made in this presentation based on information presently available to management and Neste Corporation assumes no obligation to update any forward-looking statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities or otherwise to engage in any investment activity.

3 Neste in brief

4 OUR VISION Creating responsible choices every day

5 Neste changed its name to reflect the growth in renewables

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7 Diverse demand for Neste MY Renewable Diesel, 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

8 Low-carbon Neste MY Renewable Diesel is ideal for fleet operations and also a cost competitive fuel High performance Consistent quality, free of sulphur, oxygen, and aromatics. Together with a high cetane number of the fuel ensures an efficient and clean combustion. Lower maintenance and operating costs Longer service and maintenance intervals than for other alternative fuels. Smaller environmental footprint Reduces greenhouse gas emissions by up to 80% in addition to sizable reductions in tailpipe emissions. 8 Long shelf life Can be stored over long periods of time with no deterioration in quality or water accumulation. Superior cold weather performance Suitable for very cold weather conditions. No matter the raw material, Neste guarantees its fuel will exceed cold temperature requirements. Easy switch; no additional investments Fleets can switch to renewable diesel overnight without any conversion of vehicles or to logistics systems.

9 Based on several scientific studies with different engines and aftertreatment system, Neste MY Renewable Diesel provides significant reductions in major air pollutants: Particulate matter (PM) -33% Nitrogen oxides (NOx) -9% Carbon monoxide (CO) -24% Hydrocarbons (HC) -30% Excellent solution for fleets to improve local air quality

10 More than 7000 cities around the world have set climate change targets Selected cities CO2-emission reduction targets Vancouver, CAN: -80% by 2050 San Franciso, US: -80% by 2050 London, UK: -80% by 2050 New York City & Washington DC, US: -80% by 2050 Stockholm, Sweden: -90% by 2050 Helsinki, Finland: -30% by 2030; -100% by 2050 EU Covenant of Majors (6200 cities): -20% by 2020 Tokyo, Japan: -25% by 2020 Seoul, Korea -40% by 2030 Bangkok, Thailand -20% by 2020 Buenos Aires, ARG -60% by 2030 Rio de Janeiro, BRZ -50% by 2020 Melbourne, AUS: -100% by 2020 Source: JRC (2016), Covenant of Mayors 10

11 Neste MY Renewable Diesel is being used by cities, municipalities and corporations around the world; the number of neat users is growing steadily Renewable Fuel Endorsement * San Francisco Bay Area Super Bowl 50 Host Committee * *) User of Neste Renewable Jet Fuel This material is confidential and intended for Neste internal use only 11

12 Satisfied Fleet Customers Hundreds of millions of gallons have been used by fleets including: long haul operators, bus companies, delivery operators, municipalities, school districts, mines, supermarket chains and corporations Fleets switching to renewable diesel have cited the following benefits: 1. Reduced emissions 2. Using fuel made of renewable sources 3. Using the same infrastructure as diesel with no additional costs 4. Cost-competitive in certain areas 5. No performance issues 6. Reduced or eliminated need for regeneration in vehicles with diesel particulate filters

13 Sustainability, raw materials and R&D We work continuously to offer cleaner solutions for our customers, reduce the environmental impact of our operations, and improve the sustainability of our supply chain.

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15 The world s largest company to produce diesel from waste and residues 5 Empire State Buildings worth of waste and residues 2 billion litres of renewable diesel 2 million cars powered for a year

16 In California renewable raw material provide up to 83% CI reductions Currently Used Raw Materials in California GHG Emission Reduction Neste is currently the world's only biofuel producer capable of refining high-quality renewable hydrocarbon diesel from more than ten different feedstocks on an industrial scale. Neste MY Renewable Diesel used in California may be produced produced from: Animal Fat Fish Fat Used Cooking Oil Technical Corn Oil Carbon Intensities of different raw materials under CARB LCFS: % CARB Diesel Used Cooking Oil Fish Fat North American Tallow Technical Corn Oil Global Animal Fat Units are all gco2e/mj

17 Our approach to sustainability Neste Sustainable Way includes: Cleaner solutions Safety Our people Society Climate and resource efficiency Sustainable supply chain Neste has been chosen for the Global 100 list of the world s most sustainable companies and the Dow Jones Sustainability Index for many years.

18 Flexible raw material mix Neste s renewable products can be produced flexibly from a mix of waste and residues as well as various vegetable oils The company is the only one in the world capable of producing renewable fuels from over 10 different raw materials The products have consistent high quality independent from raw material used

19 Broad range of renewable raw materials Animal fat from food industry waste Fish fat from fish processing waste Vegetable oil processing waste and residues (e.g. PFAD, PES, SBEO) Used cooking oil Technical corn oil Crude palm oil Rapeseed oil Soybean oil Camelina oil Jatropha oil Neste uses bio-based ethanol from the global market as a bio-component in gasoline. The company also uses tall oil pitch at its refinery in Naantali, Finland.

20 All renewable raw materials sustainably produced All renewable raw materials used by Neste are traced back to the land or production plants Traceability ensures renewable raw materials are sustainably produced and production has not infringed anyone s human rights or endangered rainforests or carbon-rich areas Taking leadership in sustainability practices is essential to growing acceptability of renewable feedstocks

21 Expanding our raw material portfolio Short term Long term Waste animal fats, waste oils, residue and side streams Biological pathways Thermo-catalytic pathways Photosynthesis

22 International recognition for our sustainability

23 Renewable Jet Fuel: A Solution for Sustainable Aviation

24 The case for renewable jet fuel Aviation is a significant source of GHG emissions Aviation accounts for 2% of global GHG emissions and 10% of all transportation emissions The aviation industry will continue to grow Air traffic is expected to double in 15 years The industry realizes that continued growth must be sustainable Potential benefits include approvals to grow, improved brand image, new revenue streams, price diversification, incentives Airlines, airports and OEMs are pulling all levers to lower their carbon and emission footprint Improvements in aircraft technology, operations, air traffic management Renewable jet fuel must be part of the solution Renewable diesel assets can be utilized to produce renewable jet fuel

25 Green Hub is a new solution designed to decarbonize aviation Neste and Genève Aéroport cooperation to make flying more sustainable. Genève Aéroport is planning the introduction of renewable jet fuel for aircraft operations - target 1% renewable jet fuel starting late Green Hub connects key stakeholders to decrease CO2 emissions across the aviation industry. Creates a platform where airports, solutions providers, airlines, authorities, local community and passengers all unite and contribute to more sustainable travelling. Reduces carbon footprint linked to flights and through other measures - renewable fuel for ground transport and bioplastic applications for aircraft.

26 Thank you

27 Appendix

28 Neste MY Renewable Diesels Effect on Vehicles Fueling Thanks to its aromatic free composition, Renewable Diesel is less harmful for environment and everyone exposed to fuel. Exhaust Gas System RD burns cleaner due to zero aromatics and high cetane number. Less soot and lower regeneration temperature with RD means there is less need for fuel consuming active regeneration. No ash forming components means there is lower back pressure build up. Fuel Injenction System In terms of lubricity and chemical composition, RD is similar to petroleum diesel. RD s good oxidation stability means low risk of deposit formation. Injector deposits reduce power and increase fuel consumption. Fuel Tank RD has good oxidation stability and excellent cold properties. Long shelf life is essential for seasonal equipment. Fewer deposits at the bottom of fuel tank and no corrosion. No precipitation of impurities in low temperatures. Fuel Filter RD s excellent cold properties, purity and good stability mean that there is less risk of filter blocking. Traditional biodiesel contains waxed and impurities that typically block filters at winter time. Engine RD offers similar performance to petroleum diesel and is significantly better than traditional biodiesel Due to RD s high cetane number and low distillation end point, combustion is more complete and less unburned fuel enters engine oil and dilutes it. Aromatic free RD burns cleanly and less soot is formed. RD has higher energy content compared to biodiesel

29 Fuel Property Comparison Note *1: Blending cetane number Note *2: ASTM specification > 40 Note *3: Product can be engineered to specific cloud point within this range by adjusting process conditions Biodiesel Neste MY Renewable Diesel Viscosity at +40 C (mm 2 /s) Cetane number * 1 Cloud point ( C) * 3 Heating value (lower) (MJ/kg) Heating value (MJ/l) Polyaromatic content (wt-%) 0 0 Oxygen content (wt-%) 11 0 Sulfur content (mg/kg) < 10 < 10 Carbon / hydrogen 5.6

30 Neste MY Renewable Diesel is Fully Compatible with Petroleum Diesel Biodiesel (FAME / RME) Petroleum diesel Renewable Diesel Fischer-Tropsch BTL Raw material Vegetable oils & waste animal fats Crude oil (mineral oil) Vegetable oils & waste animal fats (including high free fatty acids) Biomass Technology Esterification Traditional refining Hydrotreating Gasification & Fischer-Tropsch End product Ester-based, conventional biodiesel 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 = Hydro treated Vegetable Oil, advanced biofuel i.e. renewable fuel BTL = Biomass to Liquid

31 Simple Chemistry of Renewable Diesel

32 Three fatty acids What is a Triglyceride? Glycerol Connection=Ester

33 3 Renewable Diesel Molecules & 1 Renewable Propane Molecule

34 C 16 Paraffin is Cetane Paraffins represent the largest constituent of petroleum diesel

35 Transesterification Fatty Acid Methyl Ester Glycerol

36 Free Fatty Acids Free Fatty Acids are formed as the triglyceride breaks down For renewable diesel FFAs are hydrogenated in the same way as triglycerides Different raw material sources only change the length of the paraffin chains