Transition will be implemented in phases for processing Neste’s feedstock by end of 2024.

Krissa Welshans, Livestock Editor

November 4, 2020

3 Min Read
Neste to acquire Bunge refinery plant in Rotterdam

Neste, the world's leading producer of renewable diesel and sustainable aviation fuel produced from waste and residue raw materials, has agreed to acquire Bunge Loders Croklaan's refinery plant located in Rotterdam, Netherlands, for a purchase price of $258 million euros ($302 million), excluding working capital. The refinery plant is located next to Neste’s existing biorefinery and consists of a pretreatment facility, tank farm and jetties and has a pipeline connection to Neste’s site.

The closing of the transaction is subject to the fulfillment of customary closing conditions and regulatory approval. The transition will be implemented in phases, with the refinery plant’s full pretreatment capacity available for processing Neste’s feedstock by the end of 2024. Bunge will lease back the facility during the phased transition so it can continue to supply its customers with product.

“The acquisition of the refinery plant supports our global growth strategy in renewables. It allows us to accelerate the scaling up of our renewable raw material pretreatment capacity, which is an important driver for expanding the use of waste and residue feedstocks and increasing our feedstock flexibility,” Neste president and chief executive officer Peter Vanacker said. “We are committed to increasing the share of waste and residues in our renewables feedstock mix to 100% by 2025 and to grow our production platform to enable over 20 million tons of greenhouse gas reductions for our customers by 2030.”

To meet the growing demand for renewable diesel, sustainable aviation fuel and feedstock for chemicals, Neste focuses on building a global feedstock and production platform for renewables. Neste will expand its annual production capacity for renewables from 3.2 million to 4.5 million tons by the first quarter of 2023, with its Singapore facility expansion providing 1.3 million tons. The Bunge refinery offers further pretreatment capacity and terminal infrastructure to handle the increasingly complex waste and residue feedstocks and supports further growth in production capacity beyond 2023.

Neste has been active in the Netherlands since 2011, when the Rotterdam facility for renewable products started operations. The Rotterdam facility, together with the company’s Singapore refinery, are the world’s biggest and most advanced renewable fuel refineries. Neste’s Sluiskil plant is responsible for the storage and pretreatment of renewable raw materials, and Neste Demeter B.V. delivers raw materials to its renewable product facility.

Earlier in 2020, Neste also acquired a terminal in Rotterdam for storing, refining and blending renewable waste and residue-based raw materials. In 2019, Neste opened a new office in Hoofddorp in greater Amsterdam that serves as the global hub for its growing Renewable Aviation business. Neste MY Renewable Diesel, produced from renewable raw materials, is currently available at more than 100 sales points throughout the country.

Bunge said it plans to use a portion of the proceeds from the sale to reinvest in its asset footprint to reach greater operational flexibility and efficiency and provide its customers with an enhanced portfolio of multi-oil refined products.

“This transaction supports our long-term strategy in value-added oils and oilseeds-based ingredients by enabling us to further enhance our footprint in an innovative and sustainable way,” Bunge CEO Greg Heckman said.

About the Author(s)

Krissa Welshans

Livestock Editor

Krissa Welshans grew up on a crop farm and cow-calf operation in Marlette, Michigan. Welshans earned a bachelor’s degree in animal science from Michigan State University and master’s degree in public policy from New England College. She and her husband Brock run a show cattle operation in Henrietta, Texas, where they reside with their son, Wynn.

Subscribe to Our Newsletters
Feedstuffs is the news source for animal agriculture

You May Also Like