SOURCE: Neste Oil Oyj

September 15, 2006 02:41 ET

NESTE OIL AGREES FINNISH ANIMAL FAT SUPPLIES FOR ITS BIODIESEL PRODUCTION

ESPOO, FINLAND -- (MARKET WIRE) -- September 15, 2006 --


Neste Oil Corporation Press Release 15 September 2006 at 9:30 a.m. EET

Neste Oil has signed long-term procurement contracts covering the supply of animal fat for biodiesel production at its Porvoo refinery with two Finnish companies, Honkajoki Oy and Findest Protein Oy.

Using byproducts unsuitable for food use in this way to produce high-quality biodiesel will increase the added value of these products and is in line with the goals of the European Union.

"Indigenous animal fat of this type represents an excellent raw material for our second-generation biodiesel," says Kimmo Rahkamo, Neste Oil's Executive Vice President, Components. "Supplies of Finnish animal fat will be insufficient to meet all our needs at Porvoo, however, and we will seek for additional animal fat supplies from outside Finland."

Production of Neste Oil's biodiesel, which will begin in summer 2007, will be based on the company's proprietary technology, which is capable of using a flexible input of any vegetable oil or animal fat.

Neste Oil's second-generation biodiesel forms part of the company's strategy of combining a variety of cost-effective raw material inputs with premium refining know-how to produce advanced, high-quality petroleum products for cleaner traffic.

Honkajoki Oy, together with Findest Protein, part of the same group, process byproducts produced by the food industry to produce animal fat for onward use. The companies are owned by Finnish food manufacturers.

Neste Oil Corporation
Osmo Kammonen
Senior Vice President, Communications

For further information, please contact Kimmo Rahkamo, Executive Vice President, Components on +358 10 458 4247 or Jyrki Ignatius, Vice President, Biofuels on +358 10 458 7034.

Neste Oil Corporation is a Northern European oil refining and marketing company, with a focus on advanced, clean traffic fuels. Neste Oil's refineries are located in Porvoo and Naantali in Finland, and have a total refining capacity of approx. 250,000 bbl/d. The company employs around 4,600 people. Neste Oil is listed on the Helsinki Stock Exchange (symbol: NES1V). For further information, see www.nesteoil.com.

NExBTL (Next Generation Biomass to Liquid) is a high-quality, bio-based diesel fuel developed by Neste Oil. NExBTL offers excellent performance that meets the latest requirements of engine manufacturers and produces very low exhaust emissions. The NExBTL process can use a flexible combination of all known types of vegetable oil and animal fat. The first plant to be based on the technology is currently under construction at Neste Oil's refinery at Porvoo. This will have a capacity of 170,000 t/a and is due to be commissioned in summer 2007. Neste Oil is in negotiations with Total and OMV on the possibility of building joint biodiesel plants in France and Austria.

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