The joint venture is expected to produce renewable diesel in California, USA.
Finn oil refiner Neste has signed an agreement to establish a joint venture with the U.S. oil refiner Marathon Petroleum. Both companies own half of the new business.
Neste’s total investment is approximately EUR 0.9 billion (USD 1 billion), which includes half of the projected project development costs.
The project Neste’s renewable product capacity is expected to increase by just over one million tonnes per year.
The joint venture will produce renewable diesel at the Marathon refinery in Martinez, California. The Marathon refinery will be converted for new operations.
Renewable diesel production is expected to start in the second half of this year. The plant is scheduled to reach an annual nominal capacity of 2.1 million tonnes by the end of 2023.
The agreement still requires the fulfillment of conditions, such as regulatory approvals. This includes, but is not limited to, approval of an environmental impact assessment.
“This is a very important step in implementing our renewable energy growth strategy. The plant is located in the midst of California’s growing renewable fuel market. The partnership will further strengthen our footprint in the United States, as we have an extensive value chain that covers the sourcing of raw materials for the production and sale of renewable energy in the United States, ”says Neste’s President and CEO. Peter Vanacker in the company bulletin.
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