Neste, Marathon Petroleum Form Renewable Diesel Joint Venture
March 02 2022 - 3:54AM
Dow Jones News
By Dominic Chopping
Finnish renewable fuels producer Neste Oyj said late Tuesday it
has agreed to establish a 50/50 joint venture with Marathon
Petroleum Corp. to produce renewable diesel, following the
conversion of Marathon's refinery in Martinez, California.
"We have committed to helping our customers decrease their
greenhouse gas emissions by at least 20 million tons of CO2
equivalent annually by 2030," said Neste Chief Executive Peter
Vanacker.
"This joint venture will help us in exceeding our commitment as
it will bring a substantial amount of renewable diesel to our
customers in the U.S."
Neste's total investment will be around EUR900 million euros ($1
billion), inclusive of half of the total project development costs,
it added.
The project is expected to increase Neste's renewable products
capacity by slightly over 1 million tons per annum, with production
of renewable diesel expected to come online in the second half of
2022.
The facility is planned to reach its full annual capacity of 2.1
million tons by the end of 2023, which will increase Neste's total
production capacity of renewable products to 5.5 million tons, it
says.
Production output from the Martinez Renewable Fuels project will
be split evenly between the joint venture partners, and each
partner will be responsible for marketing the products under their
own brand.
The facility will be operated by Marathon, while both Neste and
Marathon will be responsible for sourcing feedstock--renewable,
biological material to be converted into fuel--for the joint
venture.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
March 02, 2022 03:39 ET (08:39 GMT)
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