|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||€17.9 billion (2012)|
|Operating income||€321 million (2012)|
|Net income||€159 million (2012)|
|Total assets||€7.385 billion (end 2012)|
|Total equity||€2.578 billion (end 2012)|
|Employees||5,031 (average, 2012)|
Neste Oil is a Finnish oil refining and marketing company producing mainly transportation fuels and other refined petroleum products. Neste Oil has three business areas: oil products, oil retail and renewable fuels. It produces, refines and markets oil products and shipping and engineering services, as well as licensing production technologies. Neste Oil shares are quoted on the Helsinki Stock Exchange.
Neste ("liquid" in Finnish) was established in 1948 as the state petrol company of Finland, to ensure the availability of advanced fuel. 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.
The main products of Neste Oil are gasolines, diesel fuels, aviation fuels, marine fuels, heating oils, heavy fuel oils, base oils, lubricants, traffic fuel components, solvents, LPG and bitumen. Neste has middle-sized oil refineries in Naantali (Naantali refinery) and near Porvoo (Porvoo refinery), with annual production capacities of 3 and 13 million tons, respectively.
Neste produces ETBE, which is gasoline blending stock and an antiknock agent based on bioethanol. As it is produced from isobutene of petrochemical origin and ethanol of biological origin, it is partially a biofuel. It can be mixed with gasoline and does not have the ethanol-specific problems (such as hygroscopy) that ethanol itself has.
Neste produces NExBTL diesel, which is a hydrodeoxygenated (HDO) paraffinic fuel (not traditional transesterified biodiesel). In 2007, the entire bus fleet of Helsinki Region Transport switched fully to NExBTL. Experiments by Neste, 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 on-schedule and on-budget. 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.
Since January 2013, the renewable fuels business has been clearly profitable: the annual profit is predicted to exceed €120 million in 2013. Although this provides only a small fraction of company's total annual revenue, it contributes to profitability.
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.
Criticism of the use of palm oil
The use of any palm oil as a feedstock and Neste Oil's plans to become the world leader in palm oil diesel 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.
Neste Oil has responded to the criticism by pointing out that it remains the largest user of certified palm oil in the world, and has been committed to using only certified palm oil by the year 2015. As of 2013, the share of palm oil in the feedstock base has been reduced to 53%.
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 has also developed renewable diesel production.
Construction of a new hydrocracking line for converting heavy residues into diesel has improved the profitability of the Porvoo refinery.
Neste Oil has the largest Finnish chain of service stations with market share of 40%. It has about 900 service stations in Finland, and about 240 stations in Estonia, Latvia, Lithuania, and Russia. There are several operations in the Baltic region and the United States. It is virtually a monopoly in oil refining and import in Finland. The self-service station chain in Poland was sold to Royal Dutch Shell.
- Media related to Neste Oil at Wikimedia Commons
- List of petroleum companies
- Social and environmental impact of palm oil
- "Annual Results 2012". Neste Oil. Retrieved 13 May 2013.
- "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)
- "Using sustainable palm oil for producing renewable diesel". Neste Oil. Retrieved 29 May 2011.
- "Neste Oil commits to using solely certified palm oil by the end of 2015". Neste Oil Corporation. 4 June 2009. Retrieved 29 May 2011.
|Wikinews has related news: Neste Oil to build world's largest biodiesel plant in Singapore|