Sector News

Neste acquires another used-oils business in the U.S.

November 27, 2022
Energy & Chemical Value Chain

Neste Corp. (Espoo, Finland) has agreed to acquire the used cooking oil (UCO) collection and aggregation business and related assets in the United States from Crimson Renewable Energy Holdings, LLC. The transaction includes shares in SeQuential Environmental Services, LLC, and Pure, LLC, as well as a UCO processing plant in Salem, Oregon. The transaction is subject to the fulfillment of customary closing conditions and regulatory approval.

“This acquisition further strengthens Neste’s presence and operations in the United States. We continue to execute our renewables growth strategy by expanding our renewable raw materials sourcing platform to the US West Coast, which is also a location for our upcoming renewable diesel production joint operation in Martinez, California, and a key market for serving our customers. Together with Mahoney Environmental, this business will form a nationwide UCO collection and aggregation network. I look forward to welcoming the professional team and high-quality operations to contribute to Neste’s activities in North America,” says Matti Lehmus, President and CEO of Neste.

“I want to thank our SeQuential team for their invaluable efforts and contribution in building a leading UCO collection and aggregation business on the US West Coast. Joining Neste is a great opportunity for that team to develop its UCO business and operations further with a leading manufacturer of renewable fuels,” says Harry Simpson, President and CEO of Crimson Renewable Energy Holdings.

Through the transaction, Neste is acquiring a leading UCO collection and recycling business on the US West Coast, covering the collection, logistics and storage of UCO in California, Oregon and Washington. Together with the previous acquisitions of Mahoney Environmental and Agri Trading in the United States, IH Demeter in the Netherlands, and Walco Foods in Ireland, the transaction continues to enhance Neste’s global raw materials sourcing platform and support Neste’s aim to serve the customers with the growing global need for renewable products.

Neste currently has a renewable products global production capacity of 3.3 million tons annually. Neste’s 50-50 joint venture for the production of renewable diesel with Marathon Petroleum, Martinez Renewables in Martinez, California, is expected to commence production in early 2023. Pretreatment capabilities are expected to come online in the second half of 2023, and upon completion, Martinez Renewables is expected to increase Neste’s renewable products capacity by slightly over 1 million tons (365 million US gallons) per annum.

Neste’s ongoing Singapore refinery expansion project and Martinez Renewables will increase the total production capacity of renewable products to 5.5 million tons by the end of 2023. When completed, Neste’s Rotterdam refinery expansion project in the Netherlands will further increase the company’s total production capacity of renewable products to 6.8 million tons by the end of 2026.

By Mary Bailey

Source: chemengonline.com

comments closed

Related News

November 1, 2024

Neste appoints a new Leadership Team and Eeva Sipilä as CFO

Energy & Chemical Value Chain

In order to improve operational efficiency and performance, Neste has appointed a new Leadership Team as of today. The members of the Leadership Team are: Heikki Malinen, who in addition to his President and CEO role, takes the lead of Neste’s Renewable Products business area, Markku Korvenranta, Eeva Sipilä and Hannele Jakosuo-Jansson.

November 1, 2024

INEOS announces closure of ABS facility in Ohio

Energy & Chemical Value Chain

INEOS Group Ltd. (London, U.K.; www.ineos.com) today announced its decision to permanently close its ABS (acrylonitrile butadiene styrene) production site in Addyston, Ohio. The Company will commence a safe and responsible decommissioning process in the second quarter of 2025.

November 1, 2024

Cepsa rebrands itself as Moeve, highlighting focus on energy transition

Energy & Chemical Value Chain

Cepsa announced its name change to Moeve, marking a significant milestone in the company’s transformation. This change positions Moeve as a leader in the European energy transition and demonstrates the significant progress achieved under its 2030 Positive Motion strategy, reinforcing its full commitment to sustainable energy and mobility.