MOSCOW (MRC) -- Neste plans to produce its first batch of sustainable aviation fuel (SAF) in Singapore by the end of 1Q 2023 after the COVID-19 pandemic delayed its expansion project, reported Reuters with reference to a senior executive's statement on Wednesday.
"It's been delayed due to the pandemic as we were already hoping to be on stream in 2022," Neste's Executive Vice President for Renewable Aviation, Thorsten Lange, told Reuters.
"But the revised plan is now fully on track."
Neste produces renewable fuels, mainly from waste and residues such as used cooking oil, animal fat from food industry waste, fish fat from fish processing waste and residues from vegetable oil processing.
Neste plans to start SAF production at the end of 1Q 2023 and then onwards ramp up output to an annual capacity of 1 MMt, Lange said in an interview on the sidelines of the Singapore Airshow.
The Singapore Airshow has opened to a limited crowd of trade visitors on Tuesday with the organizers expecting the biennial event to attract more than 13,000 trade attendees, much less than nearly 30,000 in 2020 and around 54,000 in 2018.
Aviation, which accounts for 3% of the world's carbon emissions, is considered one of the toughest sectors to tackle due to a lack of alternative technologies to jet fueled-engines.
Lange said he has had "very promising" discussions this week in Singapore, while Japan aiming for 10% sustainable jet fuel for airlines by 2030 is "very encouraging."
"What is typical for Asia is they may be lagging behind for the time being ... but that could massively change within the next two to three years," Lange added.
"Having a mandate in place provides demand certainty."
Singapore's flagship carrier Singapore Airlines will use blended SAF from ExxonMobil, which will be supplied by Neste.
As MRC wrote before, Neste has successfully concluded its first series of trial runs processing liquefied waste plastic at its Porvoo refinery in Finland. After kicking the series off with its first-ever industrial scale trial run with liquefied waste plastic in 2020, Neste has conducted additional runs in 2021. In the course of the trial runs, Neste has been able to upgrade liquefied waste plastic to drop-in solutions for plastic production and develop industrial scale capabilities to upgrade recycled feedstocks. Trials pave the way for continuous and commercial activities. Neste has set itself the goal of processing more than 1 MM tons of plastic waste per year from 2030 onwards.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
Neste (Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. The company is the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. In 2020, Neste's revenue stood at EUR11.8 billion, with 94% of the company’s comparable operating profit coming from renewable products.