Finland: Renewable Raw Material Sourcing Neste to Takeover Used Cooking Oil Recycling Firm Mahoney
The move to acquire Mahoney Environmental is in line with Neste’s growth strategy and will enable the company to strengthen its position in renewable raw material sourcing. The deal will also act as a platform for the firm to grow its raw material supply chain in North America.
Finland – Neste has agreed to acquire 100 % of Mahoney Environmental (Mahoney), a collector and recycler of used cooking oil in the United States, and its affiliated entities. The transaction is subject to the fulfillment of customary closing conditions and regulatory approval.
“This is another important step for Neste in the execution of our growth strategy. With this acquisition we will gain access to a substantial volume of used cooking oil as well as a platform to grow our raw material supply chain in North America,” says Peter Vanacker, President and CEO of Neste.
The transaction supports Neste in its effort to build a global waste and residue raw material platform that can keep pace with the world’s growing demand for renewable products. It will also enhance Neste’s competitiveness in the global waste and residue raw material market.
Used cooking oil offers more than 10 different types of feedstocks that Neste can use to produce renewable diesel, sustainable aviation fuel and raw materials for renewable polymers. An extensive raw material base provides flexibility, allowing Neste to respond to the needs of different markets and customers. The end product is always of premium quality, regardless of the type of renewable raw material used in production.
Mahoney collects used cooking oil from restaurants, hotels, sports stadiums and airports. The company pretreats the leftover oil, creating a reliable sustainable component that can be turned into renewable products.
“This is an important part of our growth strategy in North America,” says Jeremy Baines, President, Neste US. “In addition, we are building more commercial fueling sites, expanding our storage and logistics footprint, and distributing sustainable aviation fuel.”