Neste Oil has signed a deal that should help keep up its feedstock supply for its renewable diesel. This company news release says the agreement with U.S. algae producer Renewable Algae Energy (RAE) will secure algae oil as an alternative feedstock for Neste Oil’s NEXBTL renewable diesel for the future.
Cooperation with RAE is intended to secure Neste Oil’s access to a cost-effective supply of industrial volumes of algae oil in the future. Implementation of the agreement will require RAE to increase its algae oil production capacity and to comply with the requirements of biofuel legislation with strict sustainability criteria in the US and the EU throughout the production chain. RAE anticipates that it will be able to produce commercial-scale volumes of algae oil from 2016 onwards.
“Algae oil is well suited for producing Neste Oil’s renewable products,” says Lars Peter Lindfors, Neste Oil’s Senior Vice President, Technology. “The agreement we have just signed is yet another step in our constant work to support the commercialization of the algae industry and to take part in research on new, sustainably produced feedstocks.”
“We are honored to partner with Neste Oil,” said Jeffrey S. Kanel, Ph.D., CEO of RAE. “Neste Oil is known worldwide as the industry leader, and they are committed to producing a sustainable energy source. This commitment aligns perfectly with RAE’s mission and values, and we look forward to assisting Neste Oil to produce renewable fuels that will benefit the world.”
The agreement is non-exclusive, as Neste Oil wants more partners able to produce algae oil at a commercial scale.