Neste seeks to buy more Malaysian palm oil
13/03/2009 (Business Times, Malaysia) - Palm and Lauric Oils Conference & Exhibition

OIL and energy company Neste Oil Corp plans to buy more Malaysian palm oil as its second renewable diesel plant in Finland will start operation in about six months.

“Last year, we bought about 160,000 tonnes from Malaysia, mostly from IOI Corp Bhd.

“This year, we estimate purchase to be around 250,000 tonnes from several suppliers,” Neste vice-president of business operations of renewable fuels Risto Karppinen said yesterday.
 
Karppinen was speaking to reporters on the sidelines of the Palm and Lauric Oils Conference & Exhibition: Price Outlook 2009/10, held in Kuala Lumpur.

Neste has only bought Malaysian palm oil to date because it is comfortable with the country’s sustainable agricultural practices.

Neste has a renewable-diesel production plant with annual capacity of 170,000 tonnes in the Finnish town of Porvoo. The facility has been in operation since mid-2007.

A second plant of similar capacity is scheduled to be completed in the last quarter of this year.

Unlike biodiesel in Malaysia where palm oil is mixed with diesel, Neste uses palm oil exclusively. In Singapore, Neste is building a mega plant with annual capacity of 800,000 tonnes.

The groundbreaking ceremony to officiate the construction of the e550 million (RM2.6 billion) renewable-diesel plant was held last week. Completion is expected by the end of next year.

Neste’s fourth plant in Rotterdam is scheduled to be completed in 2011.