1

Neste

Renewable

Diesel

April 2016

Dayne Delahoussaye

3

5,000

employees

in 15 countries

Revenue

€ 15 billion

Comparable

operating profit

€ 583 millionRefining and

marketing company

focused on

low-emission, high-

quality traffic fuelsRefining capacity:

260’000 bpd of

petroleum products

54’000 bpd of

renewable diesel

6th place

in the Global 100

list of the world’s

most sustainable

companies

Neste in brief

8 September 2015

4

We removed the “Oil” from our name

Neste Worldwide - operations in 14

countries

29 March 2016 5

• Porvoo

• Naantali

• Rotterdam

• Singapore

• Bahrain

(joint venture,

Neste's

share 45%)

Production: Sales and marketing:

• Espoo

• Stockholm

• Tallinn

• Riga

• Vilnius

• St. Petersburg

• Geneva

• Beringen

• Houston

• Toronto

• Dubai

• Singapore

Headquarters: Espoo

Cleaner solutions through the years

29 March 2016 6

Lead-free

and

sulfur-free fuels

1980–

20052007 2011 2013 2014 2015

Low-sulfur

marine fuel

8 September 2015 7

We are

the world’s largest

producer of

renewable diesel

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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 CO2 emissions

equivalent to what

1.3 million homes

produce

in a year.

8 September 2015 9

NEXBTL

renewable

diesel

10

• 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

Neste is a world leader and pioneer in

renewable diesel

Diverse demand for NEXBTL,

as blending component and 100% use

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Commercial and

municipal bus

fleets

Truck fleets Construction;

Mining

Agricultural

machinery

Marine Emergency

generators

Aviation

Dump and

garbage trucks

Low-carbon NEXBTL renewable diesel is

ideal for fleet operations

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Lower operating costsLonger service and maintenance intervals

than for other alternative fuels.

Smaller environmental footprintReduces greenhouse gas emissions by up to 90%

in addition to sizable reductions in tailpipe emissions.

High performanceFree of sulphur, oxygen, and aromatics. Together with a high cetane

number of 75-95 the fuel ensures an efficient and clean combustion.

Superior cold weather performanceSuitable for very cold weather conditions. No matter the raw material,

Neste guarantees its fuel will exceed cold temperature requirements.

Long shelf lifeCan be stored over long periods of time with no deterioration in quality or

water accumulation.

Easy switch; no additional investmentsFleets can switch to NEXBTL renewable diesel overnight

without any conversion of vehicles or to logistics systems.

NEXBTL renewable hydrocarbon diesel is

fully compatible with petroleum diesel

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Biodiesel Petroleum

diesel

NEXBTL

Renewable

diesel

BTL

Raw materialVegetable oils &

waste animal fats

Crude oil

(mineral oil)

Vegetable oils &

waste animal fats

(including high free

fatty acids)

Biomass

Technology Esterification Traditional refining HydrotreatingGasification &

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

H3C-O-C-R

CnH2n+2

+ aromaticsCnH2n+2 CnH2n+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

Renewable diesel has lower carbon

footprint compared to petroleum diesel

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NEXBTL

renewable diesel

produced from

waste and

residues: 33.46 g*

Petroleum diesel:

102.01 g*

*g CO2eq/MJ. Greenhouse gas emissions calculated

in accordance with CARB LCFS.

29 March 2016 16

SatisfiedCustomers

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First fill by ”The Green Lady”,

Mary Nichols, CARB chairman

Californian based

Propel Fuels –

The first retail

chain in the world

selling neat

NEXBTL

renewable diesel

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• 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

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Neste’s customer Golden Gate Petroleum is the distributor of the fuel

• 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

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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

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• 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

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Neste’s customer Golden Gate Petroleum was the distributor of the fuel during the trial

• 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

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• 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

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Neste’s customer Golden Gate Petroleum is the distributor of the fuel

• 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

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• 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

#acrossUSA

8 September 2015 28

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

FoustDistance: 2507 miles

Consumption: 37.6 gallons

Fuel economy: 68 mpg

Average speed: 67 mph

Drive time: 37 hours

29 March 2016 29

Other applications

NEXBTL renewable diesel for off-road vehicles

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• 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

NEXBTL can be used in diesel engines in various

places; also when network electricity is not available

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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

29 March 2016 34

Aviation

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Sky high standards with NEXBTL

renewable aviation fuel

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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

Proven high-level performance; Demonstrated

on over 1,000 Lufthansa flights

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1,187Lufthansa flights

1 600

tons of Neste renewable

aviation fuel blend

consumed

(50% blend)

1500

tons reduction in CO2

emissions

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• In December 2014

Boeing successfully

tested 15% NEXBTL

high freeze point

renewable jet fuel in

one engine of

Boeing’s 787

ecoDemonstrator

29 March 2016 42

Renewableraw materials

8 September 2015 43

8 September 2015 44

Flexible raw material mix

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• 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

Broad range of renewable raw materials

29 March 2016 46

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.

Renewable feedstock mix in 2014

29 March 2016 48

Waste and residues

(e.g. waste animal fat, waste fish fat,

fatty acid distillates, technical corn oil)

Crude palm oil, 100% certified

62%

38%

Aiming for

100% waste and

residue processing

capability by 2017

More than 60% of our renewable feedstocks are waste and residues

Huge increase in waste and residue usage in

couple of years

29 March 2016 49

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2007 2008 2009 2010 2011 2012 2013 2014

To

ns

All renewable raw materials sustainably

produced

29 March 2016 50

• 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 carbon-

rich areas

• Only certified crude palm oil used

since 2013

29 March 2016 51

Raw material research

Cutting-edge research

29 March 2016 52

• 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

Expanding the feedstock base

29 March 2016 53

Waste animal fats,

waste oils, residue and

side streams

Biological

pathways

Thermo-catalytic

pathways

Photo-

synthesis

Short term Long term

Microalgae oil – one of the future raw material

alternatives

29 March 2016 54

• 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

International recognition for our

sustainability

18.4.2013 55

Member since 2007/08

Thank you

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Neste US Inc.

1800 West Loop S # 1700

Houston, Texas 77027

Tel. 1 (713) 407-4400

www.neste.us

usa@neste.com