Neste reports increased production of renewable diesel, SAF
Neste operates a biorefinery in Rotterdam. / SOURCE: Neste
February 21, 2024
BY Erin Voegele
Neste Corp. released 2023 financial results on Feb. 8, reporting that renewable diesel production was up more than 15% when compared to 2022, with sustainable aviation fuel (SAF) production up nearly 59%.
According to Neste’s fourth quarter report, the company produced nearly 3.27 million metric tons of renewable diesel last year, up from 2.83 million metric tons the previous year. SAF production reached 251,000 metric tons, up from 158,000 metric tons in 2022.
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The company’s Renewable Products segment posted a full year-comparable EBITA of EUR 1.9 billion, compared to EUR 1.76 billion in 2022. Neste President and EO Matti Lehmus said the Renewables Product segment was able to increase its comparable sales margin to $863 per ton, up from $779 per ton. “This was enabled by successful global optimization across feedstocks, markets and products,” he said.
According to Lehmus, sales volumes for renewable diesel and SAF were 3.3 million metric tons, up from 3 million metric tons in 2022. He said sales were impacted by the delayed ramp-up of Neste’s Singapore expansion and the Martinz joint venture in the U.S. During the fourth quarter, the Singapore new line utilization rate increased according to the company’s expectation to approximately 75%, he added. The company reported that the Martinez Renewables facility in California is currently operating at slightly below 50% nameplate capacity, following a fire that occurred in late 2023. Neste indicated that work is ongoing to proceed with repairs to ensure safe and reliable operations.
Lehmus also noted that the share of waste and residue feedstocks remained high throughout 2023, averaging 92% of total renewable material inputs, down slightly from 95% in 2022.
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Moving into 2024, Neste expects total sales volumes for its Renewable Products segment to increase, reaching approximately 4.4 million metric tons. SAF volumes are expected to be in a range of 500,000 to 1 million metric tons. The full year 2024 average comparable sales margin for Renewable Products is expected to be in the range of $600 to $800 per ton.
Overall, Neste reported comparable EBITDA of EUR 3.46 billion for 2023, down from EUR 3.54 billion in 2022. Comparable earnings per share were EUR 2.88, down from EUR 3.04.
A full copy of Neste’s fourth quarter earnings report is available on the company’s website.
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Neste has started producing SAF at its renewable products refinery in Rotterdam. The refinery has been modified to enable Neste to produce up to 500,000 tons of SAF per year. Neste’s global SAF production capacity is now 1.5 million tons.
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