SOURCE: Neste Oil Oyj

May 31, 2007 06:47 ET

NESTE OIL INAUGURATES NEW DIESEL LINE AND BIODIESEL PLANT AT PORVOO, AND CELEBRATES 40 YEARS OF OPERATIONS AT ITS TECHNOLOGY CENTER

ESPOO, FINLAND--(Marketwire - May 31, 2007) -



Neste Oil has invested over EUR 800 million in new production facilities at its Porvoo refinery over the last few years. Today will see the official inauguration of a new over EUR 700 million diesel production line that has been under construction for the last four years, and a EUR 100 million biodiesel plant that has been under construction for the last 18 months. The site is also celebrating 40 years of operation at its Technology Center.

"Without our Technology Center, the two other facilities we're celebrating today wouldn't exist. Improving production and products in the oil refining business always calls for new technology. Product specifications are getting tougher all the time, and feedstocks becoming more and more challenging to refine. Developing new technologies is an oil refiner's only way to address these issues successfully," according to Neste Oil's President and CEO, Risto Rinne, speaking at the celebrations today.

The Porvoo refinery is one of the most advanced in Europe. The new diesel line inaugurated today will improve the company's overall refining margin significantly, as it will convert low-value heavy fuel oil into premium-quality diesel fuel. Output will total approx. 1 million t/a of sulfur-free diesel.

The new biodiesel plant is the first to produce second-generation biodiesel based on Neste Oil's proprietary NExBTL (Next Generation Biomass To Liquid) technology. NExBTL Renewable Diesel is a hydrocarbon and offers better product characteristics and engine performance than first-generation biodiesels. The new plant will be capable of producing 170,000 t/a of NExBTL diesel fuel from a flexible mix of vegetable oil and animal fat.

Both new facilities reflect Neste Oil's strategic focus on developing and producing cleaner traffic fuels.

"The fact of the matter is that moving people and goods is an essential part of today's world. Our duty as an oil company is to produce products that make traffic and transport as clean as human ingenuity and technological development allows," continues Risto Rinne.

Global guidelines are called for

Rinne highlighted the need for a global governance type of approach to guarantee the future development of fuels.

"It will be impossible to combat climate change or develop biofuels in an optimal way unless the world can achieve a sense of common purpose - or global governance - in this area. Product grades are determined by progress in engine technology, and incorporating sustainable development into production is a must. Over and above these 'givens', it is up to the market to decide which products and which technologies are more competitive. The role of global governance would be to overcome the national, regional, and local issues. There should be a joint effort to solve global problems, such as climate change, by making use of the best solutions that have the most positive impact," stressed Rinne.

The Minister of Trade and Industry, Mauri Pekkarinen, formally inaugurated the two new facilities. Neste Oil projects that the impact of the new diesel line will begin to be seen in the company's total refining margin in the third-quarter this year. Production at the new biodiesel plant will also begin this summer.

For further information:

Neste Oil Corporation
Osmo Kammonen
Senior Vice President, Communications
Neste Oil Corporation is a refining and marketing company focused on advanced, clean traffic fuels, with a strategy that prioritizes growing its refining and premium-quality biodiesel businesses. Neste Oil's refineries are located at Porvoo and Naantali in Finland, and have a total refining capacity of approx. 250,000 bbl/d. The company employs around 4,700 people and its shares are listed on the Helsinki Stock Exchange. For further information, see www.nesteoil.com.





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Contact Information

  • Risto Rinne
    President & CEO
    tel. +358 10 458 4990

    Petri Pentti
    CFO
    tel. +358 10 458 4490