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Neste slows Singapore biofuel production ramp-up

  • : Biofuels
  • 23/09/12

Finnish biofuels producer Neste has slowed the ramp-up of its Singapore renewable diesel and sustainable aviation fuel (SAF) production owing to ongoing repair works.

Neste had planned to ramp up output to around 2.6mn t/yr by the end of 2023 from 1.3mn t/yr previously following an expansion that finished in May.

But ongoing equipment inspection and repair works will now continue to limit output during the second half of this year, Neste said. "Unexpected equipment repairs" caused a shutdown at the new line from June-August.

The firm expects sales to drop by around 100,000t during the second half of 2023 because of the works, with mainly fourth-quarter sales impacted, but did not give further details.

Neste is presently the only company in Singapore producing hydrotreated vegetable oil (HVO) and SAF, which it exports mainly to the US and European markets.

HVO and SAF prices have risen in recent months, following stronger demand and firmer oil product values. Argus last assessed the SAF fob Singapore (class II) netback at $3,055.74/t, its highest level since 22 March, and RED HVO fob Singapore (class II) netback at $2,309/t, the highest since 28 July.


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