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|Traded as||Nasdaq Helsinki: NESTE|
|Industry||Oil and gas industry|
Matti Lievonen (President and CEO)|
Jorma Eloranta (Chairman of the Board)
Refined oil products|
|Revenue||€13.217 billion (2017)|
|€1.171 billion (2017)|
|€914 million (2017)|
|Total assets||€7.793 billion (2017)|
|Total equity||€4.338 billion (2017)|
Government of Finland (50.1%)|
Foreign institutions (31.5%)
Finnish institutions (9.6%)
Finnish households (8.74%)
Number of employees
Footnotes / references|
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 countries and employs over 5,000 people. The company is the largest producer of renewable diesel in the world.
Neste 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. Neste's production facility in Singapore is the largest renewable diesel refinery in the world, boasting a capacity of 1.1 million metric tonnes per annum. A planned new production line is expected to increase its capacity by one million tonnes by 2022. In addition to its own refineries, Neste has stakes in a base oil plant in Bahrain and in Nynas AB, which produces naphthenic oil and bitumen.
Neste shares are quoted on the NASDAQ OMX Helsinki Stock Exchange. As of 2017, the Government of Finland is the largest shareholder with 50.1% of the shares. Neste was ranked the second most sustainable company in the world on the 2018 Global 100 index ranking by Corporate Knights.
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 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 name "Neste" means "liquid". The official name was Neste Oil after the 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 Naphtha, Neste Renewable Propane, and Neste Renewable Isoalkane as a feedstock for the chemical industry. 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 2016. Renewable fuels have a good margin and contribute significantly to profits.
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. 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'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 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 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 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. Since 2013, 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 deforestation.
The use of any palm oil as a feedstock has been protested by Greenpeace. Neste (among others) buys palm oil from IOI Group, company allegedly responsible for illegal deforestation. Neste has 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, 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.
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 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
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- Talouselämä valitsi! 2000-luvun mullistavin bisnesinnovaatio on... – Talouselämä[permanent dead link]. Talouselama.fi. Retrieved on 9 July 2016.
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- "4.1 Service stations – Finnish Petroleum and Biofuels Association". Retrieved 1 June 2016.
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- "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.
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- 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 2011
- 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.
|Wikinews has related news: Neste Oil to build world's largest biodiesel plant in Singapore|