Used cooking oil : Neste strengthens renewable raw materials sourcing platform
In the last few years, Finnish company Neste has entered quite a few business agreements with companies worldwide. Most of the news centered around Neste supplying sustainable aviation fuel to various airlines.
Now the producer of renewable diesel and sustainable aviation fuel produced from waste and residue raw materials 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 regulatory approval is still pending.
The European company is looking to strengthen its presence and operations in the US. 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.
Neste currently has a renewable products global production capacity of 3.3 million tons annually. A 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. 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. Together with Neste’s ongoing Singapore refinery expansion project this 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.