NESTE Renewable Jet Fuel Presented at the IATA, Alternative Fuel Symposium Vancouver, Canada November 17, 2017 LANA Van MARTER, A.A.E., I.A.P Commercial Development Manager
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Theme: Production Capacity Expansion Enablers: Aviation Stakeholders ASTM Pathways 3
Aviation preparing for carbon neutral growth Aviation industry committed to carbon neutral growth from 2020 onwards globally and regulatory support emerging both in Europe and North America Norway 1% Renewable Jet Fuel blend by 2019 EU aviation included in REDII proposal California proposal to include aviation in LCFS program Jet fuel market expected to grow by 100 Mton within next 10 years Large volume potential: e.g. At San Francisco International Airport 5% of Renewable Jet Fuel equals 158 kton/a dd At Vancouver International Airport 5% of Renewable Jet Fuel equals 59 kton/a dd Role of renewable fuels as carbon reduction measure in aviation well acknowledged 4
Despite numerous test programs and commercial launch, widespread continuous use of RJF has not been achieved? 5 Single test flights Several initiatives on commercial passenger flights (1000+) Low % available at hydrant Widespread continuous use
We target 20% of sales outside road traffic by 2020 Volume Aviation Plastics and other chemicals Time 6
Neste is committed to fighting climate change and making air travel more sustainable Neste HQ: Espoo Finland The world s first renewable diesel refinery ~3 MMbbl/yr PRODUCTION: Porvoo, Naantali, Rotterdam, Singapore, Bahrain (Neste s ownership 45%), Nynäshamn (Neste s ownership 49.99%) SALES AND MARKETING: The Netherlands The world s largest renewable diesel refinery ~8 MMbbl/yr 7 Singapore The world s largest renewable diesel refinery ~8 MMbbl/yr Espoo, Stockholm, Tallin, Washington DC, Riga, Vilnius, St. Petersburg, Geneva, Beringen, Houston, Dubai, Singapore
Program: Capacity Increase 8
Capacity increase program continues with concrete steps aiming at 4 million tons capacity by 2022 Continue debottlenecking of existing units by 15% to 3 Mton/a by 2020 Singapore plant turnaround is scheduled in 2018 Finalize feasibility studies for a new up to 1 Mton/a capacity by end 2017, aiming at final investment decision by end 2018 Target to have new production unit operational by 2022 9
ENABLERS: Sustainable Aviation Fuel Achieve sustainability goals Be the Airport of Choice Solve fuel-related issues Better air quality Engaged and happy community Contribution to fight against climate change Job creation Airport authority Academia Local & NGOs community Passengers Lower their carbon footprint Loyalty program rewards Self-fulfilment / Recognition Local corporations Airlines CSR sustainability goals Value to employees, owners and Board Marketing and PR value Enhanced brand value Be the Airline of Choice Stronger passenger value prop Legitimacy for growth Leader in fighting climate change Addressing concerns of voters Job creation Energy diversification 10 Government Fuel Suppliers Broader product portfolio Enhanced value proposition to customers Value to Society / Meet obligations
Neste cooperation with leading aviation brands 2011 2014 2016 2017 2017 HEFA used in 1,187 scheduled flights Testing begins on the HFP HEFA for a new RJF specification Oslo Airport Gardermoen is the world's first airport to offer HEFA to all flights (ITAKA) 1 % blend of renewable jet fuel starting late 2018 Memorandum of Understanding on Renewable Jet Fuel 11
Clear roadmap in place to tap into wastes and residues We aim to have access to up to 20% of the available waste and residue streams by 2021 Developing traceability and certification for residues by 2020 Opening up new feedstock markets in South America and China Developing platforms for feedstock trading operations Investing in new pre-treatment technology 12
Neste s leading role in decarbonizing society Have no fear, embrace change Expanding to new markets and solutions to de-carbonise the world Remove waste from the world We are driving circular economy by turning waste and residues into renewable fuels and materials Create responsible choices We offer sustainable solutions that make sense to people and society 13
This is an opportunity for all of us. Sustainability-minded companies and stakeholders will lead change across the industry by joining forces. 14
The best way to predict the future, is to create it 15