Neste Oil


Neste Oil
Neste Oil Oyj
Type Julkinen osakeyhtiö (OMXNES1V)
Industry Energy
Founded 2004
Headquarters Espoo, Finland
Key people Matti Lievonen (President and CEO), Timo Peltola (Chairman)
Products Fuel and oil products
Revenue €11.89 billion (2010)[1]
Operating income €323 million (2010)[1]
Profit €229 million (2010)[1]
Total assets €6.664 billion (end 2010)[1]
Total equity €2.426 billion (end 2010)[1]
Employees 5,030 (average, 2010)[1]
Website www.nesteoil.com
Neste Oil head quarters in Espoo.
Neste Oil's Porvoo refinery.

Neste Oil is a Finnish oil refining and marketing company producing mainly transportation fuels and other refined petroleum products. Neste Oil shares are quoted on the Helsinki Stock Exchange.

Contents

History

Neste was established in 1948 as the state petrol company of Finland, to ensure the availability of fuel. This entailed the building of refineries and developing the necessary technology. It held a legal import monopoly until the market liberalization in the 1990s. The oil transport infrastructure in Finland was built and is owned by Neste, and thus petrol stations usually obtain fuels from Neste, although the monopoly is no longer government-sanctioned. In the 1970s, Neste introduced petrochemical and plastics production and natural gas to Finland. In 1994, Gasum was established with Gazprom as the minor (25%) shareholder. In 1994, polyolefin production was separated into Borealis, a joint venture with the Norwegian Statoil. In 1998, Neste Oyj merged with the power company Imatran Voima Oy to create Fortum Oyj. Neste Jacobs was established with American Jacobs Engineering in 2004. In 2005, the oil division of Fortum was transferred to re-established Neste Oil. The chemical divisions were sold to other companies, making Neste an oil company only. The State of Finland maintains controlling interest (50.1%) in the company.

Activities

Neste Oil has three business areas: oil products, oil retail and renewable fuels. It produces, refines and markets oil products and shipping and engineering services, as well as licensing production technologies. Its main products are gasolines, diesel fuels, aviation fuels, marine fuels, heating oils, heavy fuel oils, base oils, lubricants, traffic fuel components, solvents, LPG and bitumen.

Neste Oil has the largest Finnish chain of service stations with market share of 40%. It has about 900 service stations in Finland, and about 240 stations in Baltic countries, Poland, and Russia. It has also middle-sized oil refineries in Naantali (Naantali refinery) and near Porvoo (Porvoo refinery), and several operations in the Baltic region and the United States. It is virtually a monopoly in oil refining and import in Finland.

The engineering division of Neste has the name Neste Jacobs as it is a joint venture with American Jacobs Engineering. Neste owns several important patents. A technology for MTBE is one. Another one is the NExOCTANE technology, which allows retrofitting MTBE plants to produce iso-octane; Neste licenses this to Halliburton. Neste has also developed renewable diesel production.

In 2007–2011, Neste Oil, Helsinki Region Transport, VTT Technical Research Centre of Finland and Proventia ran an experiment with NExBTL renewable diesel, such that the bus fleet switched to NExBTL in the Greater Helsinki Region. The trial, which was the largest field test of a biofuel produced from renewable raw materials worldwide, was a success: local emissions were decreased significantly, with particle emissions decreased by 30% and nitrogen oxide emissions by 10%, with excellent winter performance and no problems with catalytic converters.[2][3] NExBTL diesel is a paraffinic fuel (not traditional transesterified biodiesel). A renewable diesel plant with an annual production of 170,000 tons, located at the Porvoo refinery, was brought online in 2007. It produces 6.8% of the diesel consumption in Finland (2.5 million tons).[4] Another plant of the same capacity was brought on stream at Porvoo in 2009.[5]

In 2010, Neste completed their third, €550 million renewable diesel plant in Singapore on-schedule and on-budget. With production of 800,000 tons annually, it is the largest renewable diesel plant in the world.[6][7] A fourth plant of the same capacity was brought on stream in Rotterdam in 2011.[8]

Neste and Stora Enso also established a joint venture to produce renewable diesel oil from wood biomass with biomass gasification and the Fischer-Tropsch process in Varkaus, Finland.

Neste produces ETBE, which is gasoline blending stock and an antiknock agent based on bioethanol. As it is produced from isobutene of petrochemical origin and ethanol of biological origin, it is partially a biofuel. It can be mixed with gasoline and does not have the ethanol-specific problems (such as hygroscopy) that ethanol itself has.

Neste Oil is also the title sponsor of the Finnish World Rally Championship rally, Neste Oil Rally Finland.

Criticism

The use of any palm oil as a feedstock and Neste Oil's plans to become the world leader in palm oil diesel has been protested by Greenpeace.[9] Neste Oil was also awarded on the 13th of April with the public price of the public eye award for being the most irresponsible company of the year 2011 despite Neste Oil's claims of supporting sustainability.[10] Neste Oil (among others) buys palm oil from IOI Group, company allegedly responsible for illegal deforestation.[11]

Neste Oil has responded to the criticism by pointing out that it remains the largest user of certified palm oil in the world,[12] and has been committed to using only certified palm oil by the year 2015.[13]

References

See also

External links


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