Neste Oyj, (until 1 July 2015
Neste Oil Corporation) is an oil
refining and marketing company located in Espoo, Finland. It produces,
refines and markets oil products and provides engineering services, as
well as licensing production technologies.
Neste has operations in 14
Neste has petroleum refineries, at
Naantali in Finland, and
two renewable diesel refineries, in
Singapore and in Rotterdam,
Porvoo site also produces renewable diesel. In
addition to its own refineries,
Neste has stakes in a base oil plant
Bahrain and in Nynas AB, which produces naphthenic oil and
Neste shares are quoted on the NASDAQ OMX Helsinki Stock Exchange. The
company's market value in the end of 2013 was €3.7 billion.
Neste's revenue was about €17.5 billion in 2013.
3 Environmental and social issues
3.1 Palm oil
4 See also
6 External links
Neste was established in 1948 as the state petrol company of Finland,
to ensure the availability of refined fuels. This entailed the
building of refineries and developing the necessary technology. The
refineries were built using American technology, which the U.S.
government was first reluctant to provide, because many American oil
companies would be competitors. After lobbying by the contractor
Lummus, they relented, mainly due to the threat of the contract being
handed to the Soviet Union. In practice, much of the oil refined was
of Soviet origin, although after the collapse of the Soviet Union,
North Sea oil was used. Thanks to Neste, the oil crisis of 1973 had
little effect in Finland. It held a legal import monopoly until the
market liberalisation in the 1990s. The oil transport infrastructure
Finland was built and is owned by Neste, and thus petrol stations
usually obtain fuels from Neste, although the monopoly is no longer
government-sanctioned. In the 1970s,
Neste introduced petrochemical
and plastics production and natural gas to Finland. In 1994,
Gazprom as the minor (25%) shareholder. In 1994,
polyolefin production was separated into Borealis, a joint venture
with the Norwegian Statoil. In 1998, Neste's 50% stake in Borealis was
OMV and IPIC.
Neste Oyj merged with the power company Imatran Voima Oy to
Fortum Oyj. After the merger the chemical operations of Neste
were transferred to the newly established company
which was sold to the investment firm Industri Kapital for $535
million. An engineering joint venture,
Neste Jacobs, was
established with the American
Jacobs Engineering in 2004. In 2005,
Fortum demerged; the oil division of
Fortum was transferred to the
Neste Oil. At this point, the
building (Raaden hammas) was kept by Fortum. The State of Finland
maintains controlling interest (50.1%) in the company.
The name "Neste" means "liquid". The official name was
Neste Oil after
Fortum demerger, but it was changed back to
Neste to emphasize the
renewable energy business.
Its renewable fuels based on
NEXBTL technology and includes Neste
Renewable Diesel and
Neste Renewable Jet Fuel, and
Neste Renewable Propane, and
Isoalkane as a
feedstock for the chemical industry.
Neste Renewable Diesel
Neste Renewable Diesel is a
hydrodeoxygenated (HDO) paraffinic fuel instead of a traditional
transesterified biodiesel, and can be used in conventional diesel
engines in any blending ratio without engine modifications. Neste
Renewable Diesel can be produced from over ten different raw
materials. In 2013, waste and residues accounted for over half of
renewable raw material input, a fraction that increased to 80% in
Renewable fuels have a good margin and contribute significantly
In 2007, the entire bus fleet of
Helsinki Region Transport
Helsinki Region Transport switched
fully to NEXBTL. Experiments by Neste, VTT Technical Research Centre
Finland and Proventia showed that local emissions were decreased
significantly, with particle emissions decreased by 30% and nitrogen
oxide emissions by 10%, with excellent winter performance and no
problems with catalytic converters. In Finland, two renewable
diesel plants, located at the
Porvoo refinery, were brought on stream
in 2007 and 2009. Together, these produce 0.525 million tons annually,
which is approximately one fifth of the diesel consumption in
Finland. In 2010,
Neste completed their third, €550
million renewable diesel plant in Singapore. With production of
800,000 tons annually, it is the largest renewable diesel plant in the
world. A fourth plant of the same capacity was brought on
Rotterdam in 2011. In February 2014, Talouselämä
magazine named Neste's
NEXBTL renewable diesel as the most
groundbreaking Finnish business innovation of the new millennium.
Stora Enso ran a joint venture to research production of
renewable diesel oil from wood biomass with biomass gasification and
Fischer-Tropsch process in Varkaus, Finland. However, coming
second in a bid for
European Investment Bank
European Investment Bank startup funding led to
cancellation of this project.
Neste owns a chain of service stations, which is the largest chain in
Finland. It has about 800 service stations in Finland, and
about 240 stations in Estonia, Latvia, Lithuania, and Northwest
Russia. The self-service station chain in Poland was sold to Royal
Dutch Shell in April 2013.
Neste was ranked Finland's most
respected service station brand in a survey of Finnish brands carried
out by Taloustutkimus and Markkinointi & Mainonta in summer
The engineering division of
Neste has the name
Neste Jacobs as it is a
joint venture with American Jacobs Engineering.
Neste owns several
important patents. A technology for MTBE is one. Another one is the
NExOCTANE technology, which allows retrofitting MTBE plants to produce
Neste licenses this to Halliburton.
Environmental and social issues
Neste uses 1–2% of the world's palm oil production. In 2015, 31% of
renewable raw materials used by
Neste consisted of crude palm oil.
Neste uses only certified palm oil. In November 2013,
Neste became the world's first company to be awarded an RSPO-RED
Supply Chain certificate under the RSPO's new, more demanding
certification system. All palm oil used by the company is
certified in accordance with the ISCC, RSPO, or RSPO-RED systems.
In April 2013,
Neste began a programme of close cooperation with The
Forest Trust (TFT), a non-profit organisation focused on preventing
The use of any palm oil as a feedstock has been protested by
Neste (among others) buys palm oil from IOI Group,
company allegedly responsible for illegal deforestation.
been a target of sustained attacks by Greenpeace, including publicity
campaigns where in January 2011,
Neste won the less flattering
Public Eye Awards, in Davos, Switzerland and a parody webpage,
Neste attempted to shut down. WIPO rejected the
trademark-based complaint, since page is noncommercial, gives no
economical benefit, is not misleading and the companies have to accept
critics as part of the freedom of speech.
From July to October 2015 increased palm oil demand in Indonesia
burned two million hectares of forest and peatland to fires. in
October 2015 peatland carbon emissions from the fires surpassed the
average daily emissions of the entire US economy. Every year tens of
thousands die prematurely from respiratory illness caused by smoke
from annual forest and peatland fires.
Neste is the title sponsor of the Finnish World Rally Championship
Neste Rally Finland.
Neste has hired Prince EA to host YouTube videos concerning education
and the environment.
Media related to
Neste at Wikimedia Commons
Energy in Finland
List of petroleum companies
Social and environmental impact of palm oil
^ Öljyn pyörteissä – Nesteen tarina, MTV3.doc su 27.9.2015 klo
14.00. Franck Media. Retrieved on 9 July 2016.
Neste to complete Borealis sale by end Feb". ICIS. 9 January 1998.
Retrieved 25 January 2012.
^ Alvarado, Vladimir (1999). "
Neste Chemicals will go it alone". Chem.
Eng. News. American Chemical Society. 42 (77): 15.
^ Leppänen, Timo. Merkilliset nimet - Tarinoita yritysten ja
tuotteiden nimistä. SKS 2016.
^ "Renewable products". 27 May 2015. Archived from the original on 14
March 2016. Retrieved 21 July 2016.
^ "Renewable raw material procurement". Retrieved 1 June 2016.
^ Biofuel reduces local emissions efficiently. hsl.fi (2011)
Neste Oil – working for better urban air quality".
cleantechfinland.com. Archived from the original on 12 December 2010.
Retrieved 28 December 2010.
^ "Corporate info". nesteoil.com. 25 February 2015. Retrieved 1 June
^ "Päivän lehti – Helsingin Sanomat". Retrieved 1 June 2016.
Neste Oil's second renewable diesel plant commissioned at Porvoo".
nesteoil.com. 29 July 2009. Archived from the original on 27 November
2010. Retrieved 1 June 2016.
Neste Oil to build a NExBTL Renewable Diesel plant in Singapore".
nesteoil.com. 30 November 2007. Archived from the original on 19 June
2013. Retrieved 1 June 2016.
Neste Oil starts up its new renewable diesel plant in Singapore".
nesteoil.com. 15 November 2010. Archived from the original on 20 June
2013. Retrieved 1 June 2016.
Neste Oil starts up Europe's largest renewable diesel plant in
Rotterdam". nesteoil.com. 20 September 2011. Archived from the
original on 20 June 2013. Retrieved 1 June 2016.
^ Talouselämä valitsi! 2000-luvun mullistavin bisnesinnovaatio on...
– Talouselämä[permanent dead link]. Talouselama.fi. Retrieved on 9
Neste Oil and
Stora Enso to end their biodiesel project and
continue cooperation on other bio products". nesteoil.com. 17 August
2012. Archived from the original on 24 October 2012. Retrieved 1 June
^ "4.1 Service stations – Finnish
Petroleum and Biofuels
Association". Retrieved 1 June 2016.
^ "Station network". Retrieved 1 June 2016.
^ "Wyborcza.pl". Retrieved 1 June 2016.
Neste Oil's sale of its Polish retail stations to Shell closed".
nesteoil.com. 2 April 2013. Archived from the original on 24 October
2012. Retrieved 1 June 2016.
Neste Oil kiilasi ABC:n ohi – Markkinointi & Mainonta.
Marmai.fi. Retrieved on 9 July 2016.
^ "Emission reductions from renewable fuel of
Neste corresponds to
greenhouse gas emissions of about 1.3 million cars". neste.com. 8
March 2016. Retrieved 1 June 2016.
Neste Oil achieves its palm oil certification target two years
early". nesteoil.com. 17 December 2013. Archived from the original on
26 April 2014. Retrieved 1 June 2016.
Neste Oil awarded the world's first RSPO-RED certificate".
nesteoil.com. 27 November 2013. Archived from the original on 1 May
2014. Retrieved 1 June 2016.
^ "Certified feedstocks and production plants". nesteoil.com.
Retrieved 1 June 2016.
Neste Oil to work closer with its stakeholders to protect the
world's rainforests". nesteoil.com. 4 April 2013. Archived from the
original on 7 June 2014. Retrieved 1 June 2016.
Neste Oil's plans for global leadership in palm oil diesel will
drive massive rainforest destruction and climate change Greenpeace
International Archived 4 June 2016 at the Wayback Machine..
Greenpeace.org (12 May 2009). Retrieved on 2016-07-09.
^ "NEW REPORT: Europe's demand for palm oil driving deforestation and
land-grabbing". foeeurope.org. 15 March 2010.
^ "Tribune de Genève, l'actualité en direct, en photos et
vidéos : politique, sports, people, culture, économie, média".
tdg.ch. 13 April 2011.
Neste Oil wins a less than flattering award in Davos. hs.fi January
Greenpeace parodiasivu suututti
Neste Oilin, Nesteen mielestä
Nestespoil-sivu loukkaa sen tavaramerkkiä,
Greenpeace taas pitää
sivun sulkemisyrityksiä sensuurina HS 22 May 2012 B10
Neste ei siedä kritiikkisivustoa, Greenpeacen Nestespoil.com
yritetään sulkea Archived 25 May 2012 at the Wayback Machine.
Tietokone 22 May 2012
Greenpeace saa käyttää Nestespoil-verkkotunnusta HS 7 August 2012
C1 (in Finnish)
^ Lamb, Kate (6 November 2015). "Illegally planted palm oil already
growing on burnt land in Indonesia". The Guardian.
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