Sustainable Aviation Fuels Neste Expands Singapore Refinery, Develops SAF Supply Chain
Neste has completed the expansion of its Singapore Refinery and has also started-up the plant which aims to bring the refinery’s total capacity to 2.6 million tons annually of which up to one million tons will be sustainable aviation fuel. It has also established a SAF supply chain to the Changi Airport.
Espoo/Finland – Neste announced its final investment decision on additional renewable products production capacity in Singapore in December 2018. The 1.6 billion-euro Singapore Expansion project has been successfully completed, the start-up of the refinery expansion has been completed after mid-April, and Neste celebrated its opening recently. The Singapore refinery expansion doubles Neste’s production capacity in Singapore and brings the refinery’s total capacity to 2.6 million tons annually of which up to one million tons can be sustainable aviation fuel (SAF). This strengthens our position as the world's leading SAF producer. In addition to increased production capacity, the enhanced raw material pre-treatment capacity onsite increases Neste’s capability to process more challenging waste and residue raw materials.
“Singapore has world-class logistics connectivity enabling efficient transportation of the renewable raw materials as well as final products globally. Also, its world-class education supports the availability of future talents to be a part of our production and commercial operations, as well as to enhance our R&D in our recently established Innovation Center,” continues Lehmus.
Neste has established an integrated SAF supply chain to Singapore Changi Airport
Neste is committed to supporting the aviation industry globally in achieving the goal of net-zero emissions by 2050. Also, Neste is pleased to support Singapore in achieving its ambitious emission reduction targets as part of the Green Plan 2030 and Sustainable Air Hub Blueprint under preparation for completion later in 2023.
“Singapore is a leading aviation hub in the Asia-Pacific region. In addition to being a global hub for Neste’s SAF production, we have established an integrated SAF supply chain to Singapore Changi Airport to make our product available to an increasing number of regional and international airlines. The neat SAF is produced at our refinery located in the Tuas area of Singapore, then blended together with conventional fossil jet fuel and certified to meet jet fuel specifications at the blending terminal in Singapore, and finally delivered to our customers at Changi Airport,” says Sami Jauhiainen, acting Executive Vice President for the Renewable Aviation business unit of Neste.
In order to be able to offer blended Neste My Sustainable Aviation Fuel directly to airlines at Singapore Changi Airport, Neste has agreed to acquire a stake and become a minority shareholder in Changi Airport Fuel Hydrant Installation Company (Cafhi), the fuel storage and infrastructure joint venture in the airport. The transaction is subject to the fulfilment of customary closing conditions.
SAF is widely acknowledged as a key element in achieving the aviation industry’s ambitious emission reduction goals. To support its aviation customers across the globe in achieving their climate targets by reducing their emissions with SAF, Neste is also developing a global network of airports where it has the capability to supply SAF directly into aircraft. Singapore’s Changi airport extends this network of airports, which includes San Francisco (SFO) and Los Angeles (LAX) in the U.S., Amsterdam (AMS) in the Netherlands, and Helsinki Airport (HEL) in Finland. Neste is also supplying SAF to various fuel marketing companies, broadening its availability outside its own airport network.
Using Neste’s SAF reduces greenhouse gas emissions by up to 80 % over the fuel’s life cycle compared to using fossil jet fuel. Neste’s total SAF production capability will be 1.5 million tons per annum by the end of 2023 when the modifications at Neste’s Rotterdam refinery are completed, and 2.2 million tons when the expansion of the Rotterdam refinery is completed by the first half of 2026.