NESTE OIL Biofuels as Renewable Energy

Presentation at Green Commerce Class, 12 Feb 2013

Neste Oil in brief

2008/2009, 2009/2010, 2010/2011, 2011/2012

A refinery and marketing company concentrating on delivering fuels for cleaner traffic
15 million tons of oil products annually Turnover of 11.8 billion euro in 2010 5,110 personnel State of Finland is the controlling owner (50.1% holding)
2010, 2011, 2012

Neste Oil and biofuels

Worlds largest renewable diesel producer with 2 million tons capacity Leader in sustainability of biofuel production Developing 3rd generation biofuel technologies and new raw material sources 6 consecutive years at Global 100 sustainability ranking list, now at 4th position (2013)
2007, 2008, 2009, 2010, 2011, 2012

What is required from a good biofuel?

CONSUMER Ease of use, enough availability High quality fuel = problem-free use Compatibility to cars Reasonable fuel price

CAR INDUSTRY Compatibility to engines

SOCIETY Clear green house emission reduction, improvements of air quality Sustainability over the entire value chain No additional or low infrastructure costs

Fuel pathways

Mineral Oil Sugars Vegetable Oil Vegetable Oils Biomass

Refining Fermentation Bioprocesses Hydrocarbons: Gasoline Jet Diesel Transesterification HVO (NExBTL) Gasification FischerTropsch Hydrocarbons: paraffins

Alcohols: Ethanol Butanol

Esters

Hydrocarbons: paraffins

Commercial

Commercial

Commercial

Commercial by Neste Oil

Development

GASOLINE DIESEL

GASOLINE

DIESEL

DIESEL

DIESEL GASOLINE

Comparison of selected biofuel pathway costs

Sugar ethanol

Starch ethanol wet

Starch ethanol dry FAME (traditional biodiesel) HVO (NexBTL)

Cellulocic ethanol

BTL 0% 20% 40% 60%

Conversion cost

80%
Capital cost

100%

Raw Material cost

GREEN PRODUCT
Neste Oils NExBTL renewable diesel the highest quality diesel in the world

NExBTL use reduces traffic related emissions

Helps combat climate change 50-80% lower greenhouse gas emissions compared to fossil diesel Measured over the products entire life cycle

Helps improve urban air quality

Contributes to a significant reduction in pipe emissions compared to fossil diesel
Nitrogen oxide (NOx) -10% Particulates (PM) -28% Carbon monoxide (CO) -28% Hydrocarbons (HC) -50%

Renewable NExBTL diesel

Product quality that outperforms conventional biodiesel (FAME) and fossil diesel Compatible with fossil diesel drop in solution
Can be used in all modern diesel engines without any modifications (passenger cars, buses, trucks, etc.) Meets engine manufacturers toughest quality specifications Can be used in diesel engines as such (100%) or blended with fossil diesel (as in Neste Green diesel) No Best before date Compatible with existing logistical and distribution systems

Can be transported and stored like fossil diesel

Commercially available today Cool-natured characteristics

NExBTL Jet fuel

Neste Oil is a pioneer in renewable fuel for aviation industry Compatible with current jet engines Helps airlines significantly minimize carbon footprint and GHG emissions Worlds largest test is undergoing : Lufthansa flies 8 timeseach day between Hamburg and Frankfurt using Neste Oils bio jet

GREEN PRODUCTION

Renewable Feedstock (Raw Materials)

NExBTL renewable fuel is produced from a mix of various vegetable oils and waste animal fats.

Currently used raw materials

Palm oil, palm stearin, palm fatty acid distillate (PFAD)

Waste animal fat from the meat processing industry

Rapeseed oil

Camelina oil

Jatropha oil

Soy oil

Neste Oils criteria for selecting new raw materials

Availability for industrial scale production Economical perspectives Features of sustainable development Carbon foot print (greenhouse gas emission balance) Water foot print Nutrients Land use Certified CPO by RSPO or others

The 3Ps

Planet
Reduces emissions Respects legislation Respects regulation Uses land efficiently

People
Respects human rights Respects labour rights Enhances economical and social improvement

Profit
Available Commercially feasible

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Thank You!

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