Renewable diesel producer Neste has agreed to acquire 100 percent of Mahoney Environmental, a collector and recycler of used cooking oil in the U.S., and its affiliated entities. The transaction is subject to the fulfillment of customary closing conditions and regulatory approval.

“This is another important step for Neste in the execution of our growth strategy,” said Peter Vanacker, president and CEO of Neste. “With this acquisition we will gain access to a substantial volume of used cooking oil as well as a platform to grow our raw material supply chain in North America.”

The transaction supports Neste in its effort to build a global waste and residue raw material platform that can keep pace with the world’s growing demand for renewable products. It will also enhance Neste’s competitiveness in the global waste and residue raw material market. 

Used cooking oil is one of more than 10 different types of feedstock that Neste can use to produce renewable diesel, sustainable aviation fuel and raw materials for renewable polymers. An extensive raw material base provides flexibility, allowing Neste to respond to the needs of different markets and customers. The end product is always of premium quality, regardless of the type of renewable raw material used in production.

Mahoney collects used cooking oil from restaurants, hotels, sports stadiums and airports. The company pretreats the leftover oil, creating a reliable sustainable component that can be turned into renewable products. 

“This is an important part of our growth strategy in North America,” said Jeremy Baines, president, Neste US Inc. “In addition, we are building more commercial fueling sites, expanding our storage and logistics footprint, and distributing sustainable aviation fuel.” 

Neste is ranked as the world’s 3rd most sustainable company according to the Global 100 Index. The company’s premium renewable products can enable forward thinking businesses and cities to phase out fossil fuels, reduce their carbon footprint and achieve their sustainability targets. 

Neste operates renewable product refineries in Singapore, Rotterdam in the Netherlands, and Porvoo in Finland. These facilities can process a wide range of sustainably sourced, 100 percent renewable raw materials, and keep customers around the world supplied with Neste’s premium renewable products. 

Neste announced a $1.54 billion expansion at its renewable products refinery in Singapore, which will significantly increase production capacity of Neste MY Renewable Diesel and sustainable aviation fuel. 

Mahoney Environmental’s unique, integrated business model enables the company to provide an unparalleled customer value proposition. Neste will support all parts of Mahoney’s differentiated service model, which includes cooking oil equipment installation and design, fresh oil delivery and grease trap cleaning services.