Neste Oil Esa Lindgren Koli Forum 15092011

7/29/2019 Neste Oil Esa Lindgren Koli Forum 15092011

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Making renewable fuels aserious business

Case Neste Oil

Esa LindgrenKoli Forum

15 September 2011


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Content

Neste Oil in brief Why biofuels?

Neste Oils NExBTL renewable fuel

Renewable fuel from current and new raw materials


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Neste Oil in brief

A refinery and marketing company concentrating ondelivering fuels for cleaner traffic

Refining of 15 million tons of oil products per year

Listed on NASDAQ OMX Helsinki

Net sales EUR 11.9 billion in 2010

Operations in 15 countries

Personnel 5,000

State of Finland as primary owner (50.1% holding)


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We have a long track record in developing cleaner fuels

1982NesteAlfalubricants

1985City-gasoline:lead-free,withoxygenate

1988Futura brand:

gasoline that

keeps engines clean

1989Lead-free Futura

95E, replacing

92-octane

gasoline

1991CityFutura,with

anoxygenate

SyntheticPAO

1993FuturaCitydiesel

2008NesteGreendiesel

2005NExBTL

diesel

fromrenewable

rawmaterials

1994NewFutura:lesssulfurthaneverbefore

1997VHVIbaseoils

2003NewFuturagasolinemarketlaunch

2004Sulfur-free

gasolines

anddiesel

fuels

2010Neste Green

100 -diesel

2011NExBTL

renewable

aviation fuel


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Why biofuels?


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Energy industry is facing a need for change


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Why biofuels?

1. To combat climate change andlocal emissions

2. To reduce dependency on fossil oil

3. To improve security of energy supply


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There is a clear request to develop biofuels EU legislation is leading the way


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What is required from a good biofuel?

CONSUMER Ease of use, sufficient availability

High fuel quality> trouble-free use

Compatibility to current cars

Bearable fuel price

CAR INDUSTRY Compatibility to current engines High fuel quality -> possibility to develop engine technology

SOCIETY Clear green house gas emission reduction, air quality improvements

Sustainability over the whole value chain

No additional or low infrastructure costs Bearable fuel price


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Fuel pathways

Mineral Oil

Refining

Hydrocarbons:

Gasoline

Jet

Diesel

Commercial

Sugars

Fermentation

Bioprocesses

Alcohols:

Ethanol

Butanol

Commercial

Vegetable Oil

Trans-

esterification

Esters

Commercial

Vegetable Oils

HVO (NExBTL)

Hydrocarbons:

paraffins

Commercialby Neste Oil

Biomass

Gasification

Fischer-

Tropsch

Hydrocarbons:

paraffins

Development

GASOLINE

DIESEL

GASOLINE DIESEL DIESEL DIESEL

GASOLINE


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Neste Oils NExBTL renewable diesel

the highest quality diesel in the world


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NExBTL use reduces traffic related emissions

Helps combat climate change

50-80% lower greenhouse gas emissions

compared to fossil diesel

Measured over the products entire life cycle

Helps improve urban air quality Contributes to a significant reduction* in tail

pipe emissions compared to fossil diesel

Nitrogen oxide (NOx) -10%

Particulates (PM) -28%

Carbon monoxide (CO) -28% Hydrocarbons (HC) -50%

*Emissions reduction figures are averages based on numerous field and laboratory tests.


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Renewable NExBTL diesel

Product quality easily outperforms conventionalbiodiesel (FAME) and fossil diesel

Fully compatible with fossil diesel drop-in solution

Can be used in all modern diesel engines without any

modifications (passenger cars, buses, trucks, etc.)

Meets engine manufacturers toughest quality

specifications

Can be used in diesel engines as such (100%) or blended

with fossil diesel (as in Neste Green diesel)

Can be transported and stored like fossil diesel

No Best before date

Compatible with existing logistical and distribution systems

Excellent cold properties

Commercially available today


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NExBTL aviation fuel

Neste Oil is a pioneer in renewable jet fuelASTM approved bio jet

Fully compatible with current jet engines, a true

drop-in solution for airlines

Helps airlines significantly minimize carbon

footprint and GHG emissions Worlds largest test is going on: Lufthansa flies

8 legs each day between Hamburg and

Frankfurt using Neste Oils bio jet


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On stream Location Tons/year

2007 Porvoo 1, Finland 190 000

2009 Porvoo 2, Finland 190 000

2010 Singapore 800 000

Q3/2011 Rotterdam, Holland 800 000

2 000 000

NExBTL production capacity some 2 Mtons/a

Neste Oils NExBTL plantin Porvoo, Finland.

Investments in NExBTL capacity total Eur 1.5 billion.


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Renewable feedstock


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Oil is the largest commodity traded in theworld. In order to substitute fossil oil to anymeaningful degree, we need a lot of new

renewable feedstock.

Right now, we work with what we have.


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NExBTL renewable fuel can be produced flexibly from amix of various vegetable oils and waste animal fats.

The fuel has constant high quality independent fromraw material used.


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Currently used raw materials

Palm oil, palm stearin,palm fatty acid distillate

(PFAD)

Waste animal fat fromthe meat processing

industry

Rapeseed oil

Camelina oil Jatropha oil Soy oil


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Algae

Harvesting residueand biomass

gasification

Microbes

New raw materials and process alternatives

Nonfood vegetableoils

About 80% of the companys R&D costs totaling ~40 MEUR in 2010 were

directed to researching renewable raw materials and the refining technologies.

Waste animal fatsand waste oils,side streams
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0 % 20 % 40 % 60 % 80 % 100 %

BTL

Cellulocic ethanol

HVO

FAME

Starch ethanol dry

Starch ethanol wet

Sugar ethanol

Feedstock cost Conversion cost Capital cost

Comparison of selected biofuel pathway costs


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Neste Oils criteria for selecting new raw materials

Applicability

Availability for industrial scale production Economical perspectives

Features of sustainable development

Carbon foot print (greenhouse gas emission balance)

Water foot print

Nutrients

Land use


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Recognized for the sustainability work we do

, 2008/2009, 2009/2010, 2010/2011, 2011/2012


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And finally all we ask for from legislators

Keep ambitious biofuel targets

Maintain technology neutrality

Dont allow protectionism gain ground

Accept that feedstock are global just like oil is


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Thank You !

Documents

Neste Oil Esa Lindgren Koli Forum 15092011