|This article may rely excessively on sources too closely associated with the subject, preventing the article from being verifiable and neutral. (June 2014)|
|Type||Julkinen osakeyhtiö (public company)|
|Traded as||OMX: NES1V|
|Industry||Oil and gas industry|
|Key people||Matti Lievonen (President and CEO)
Jorma Eloranta (Chairman of the Board)
|Products||Refined oil products
|Revenue||€17.5 billion (2013)|
|Operating income||€632 million (2013)|
|Employees||5,097 (average, 2013)|
Neste Oil 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 Oil has operations in 14 countries.
Neste Oil has petroleum refineries, at Porvoo and Naantali in Finland, and two renewable diesel refineries, in Singapore and in Rotterdam, Netherlands. The Porvoo site also produces renewable diesel. In addition to its own refineries, Neste Oil has stakes in a base oil plant in Bahrain and in Nynas AB, which produces naphthenic oil and bitumen.
Neste Oil 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 Oil's revenue was about €17.5 billion in 2013.
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. It held a legal import monopoly until the market liberalization in the 1990s. The oil transport infrastructure in 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, Gasum was established with 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 sold to OMV and IPIC.
In 1998, Neste Oyj merged with the power company Imatran Voima Oy to create Fortum Oyj. After the merger the chemical operations of Neste were transferred to the newly established company Neste Chemicals, 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 re-established Neste Oil. At this point, the Neste headquarters building (Raaden hammas) was kept by Fortum. The State of Finland maintains controlling interest (50.1%) in the company.
Neste Oil produces and sells petroleum products. Its oil products segment focuses on gasolines, diesel fuels, aviation fuels, marine fuels, heating oils, heavy fuel oils, base oils, lubricants, traffic fuel components, solvents, LPG and bitumen. Construction of a new hydrocracking line for converting heavy residues into diesel has improved the profitability of the Porvoo refinery.
Its renewable fuels based on NEXBTL technology and includes NEXBTL diesel and NEXBTL aviation fuel, and NEXBTL naphtha, NEXBTL propane, and NEXTBTL isoalkane as a feedstock for the chemical industry. NEXBTL renewable diesel is a hydrodeoxygenated (HDO) paraffinic fuel (not traditional transesterified biodiesel). NEXBTL 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.
In 2007, the entire bus fleet of Helsinki Region Transport switched fully to NEXBTL. Experiments by Neste Oil, VTT Technical Research Centre of 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 stream in Rotterdam in 2011. In February 2014, Talouselämä magazine named Neste Oil's NEXBTL renewable diesel as the most groundbreaking Finnish business innovation of the new millennium.
Neste and Stora Enso ran a joint venture to research production of renewable diesel oil from wood biomass with biomass gasification and the Fischer-Tropsch process in Varkaus, Finland. However, coming second in a bid for European Investment Bank startup funding led to cancellation of this project.
Neste Oil has the largest Finnish chain of service station. 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 Oil was ranked Finland's most respected service station brand in a survey of Finnish brands carried out by Taloustutkimus and Markkinointi & Mainonta in summer 2013.
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 iso-octane; Neste licenses this to Halliburton.
Neste Oil uses 1-2% of the world's palm oil production. In 2013, 47.4% of renewable raw materials used by Neste Oil consisted of crude palm oil. Since 2013, Neste Oil uses only certified palm oil. In November 2013, Neste Oil 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 Oil began a program of close cooperation with The Forest Trust (TFT), a non-profit organization focused on preventing deforestation.
The use of any palm oil as a feedstock has been protested by Greenpeace. Neste Oil (among others) buys palm oil from IOI Group, company allegedly responsible for illegal deforestation. Neste Oil has been a target of sustained attacks by Greenpeace, including publicity campaigns where in January 2011, Neste Oil won the less flattering Public Eye Awards, in Davos, Switzerland and a parody webpage, which 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.
- Media related to Neste Oil at Wikimedia Commons
- List of petroleum companies
- Social and environmental impact of palm oil
- "Annual Report 2013". Neste Oil. Retrieved 28 May 2014.
- "Neste to complete Borealis sale by end Feb". ICIS. 1998-01-09. Retrieved 2012-01-25.
- Alvarado, Vladimir (1999-10-18). "Neste Chemicals will go it alone". Chem. Eng. News (American Chemical Society) 42 (77): 15. doi:10.1021/cen-v077n042.p015. Retrieved 2012-01-25.
- "Neste Oil – working for better urban air quality". Retrieved 2010-12-28.
- Biodieselhankkeet käynnistävät Suomessa valtavan risusavotan - HS.fi - Autot
- Neste Oil to build a NExBTL Renewable Diesel plant in Singapore - Neste Oil Com
- Neste Oil wins a less than flattering award in Davos January 2011
- Greenpeace parodiasivu suututti Neste Oilin, Nesteen mielestä Nestespoil-sivu loukkaa sen tavaramerkkiä, Greenpeace taas pitää sivun sulkemisyrityksiä sensuurina HS 22.5.2012 B10
- Neste ei siedä kritiikkisivustoa, Greenpeacen Nestespoil.com yritetään sulkea Tietokone 22.5.2012
- Greenpeace saa käyttää Nestespoil-verkkotunnusta HS 7.8.2012 C1 (Finnish)
|Wikinews has related news: Neste Oil to build world's largest biodiesel plant in Singapore|