Aviation360 MEA

Neste made its final investment decision on increased production capacity for renewable products in Singapore. The start-up of the refinery expansion was finished after mid-April, and Neste celebrated the opening on May 17th. The 1.6 billion euro Singapore Expansion project was successfully completed.

The Singapore refinery’s total annual capacity will increase to 2.6 million tons as a result of the development, of which up to one million tons can be sustainable aviation fuel (SAF). This doubles Neste’s production capacity in Singapore. This helps us maintain our position as the top producer of SAF in the world. Along with expanded production capacity, Neste’s ability to process more difficult waste and residue raw materials is increased by the additional raw material pre-treatment capacity on site.

“We celebrate today our Singapore refinery expansion opening with our customers, partners and employees. This marks another important milestone in our renewables growth strategy execution. The completion of the construction of the refinery is a remarkable achievement given the complexity of the project and as it was carried out during a global pandemic. I want to express my sincere and warmest thanks to all our partners and employees who have been part of this project,” says Matti Lehmus, President and CEO of Neste. “Singapore has world-class logistics connectivity enabling efficient transportation of the renewable raw materials as well as final products globally. Also, its world-class education supports the availability of future talents to be a part of our production and commercial operations, as well as to enhance our R&D in our recently established Innovation Center.”

Neste is committed to supporting the aviation industry globally in achieving the goal of net-zero emissions by 2050. Also, Neste is pleased to support Singapore in achieving its ambitious emission reduction targets as part of the Green Plan 2030 and Sustainable Air Hub Blueprint under preparation for completion later in 2023.

“Singapore is a leading aviation hub in the Asia-Pacific region. In addition to being a global hub for Neste’s SAF production, we have established an integrated SAF supply chain to Singapore Changi Airport to make our product available to an increasing number of regional and international airlines. The neat SAF is produced at our refinery located in the Tuas area of Singapore, then blended together with conventional fossil jet fuel and certified to meet jet fuel specifications at the blending terminal in Singapore, and finally delivered to our customers at Changi Airport,” says Sami Jauhiainen, acting Executive Vice President for the Renewable Aviation business unit of Neste.

Neste has agreed to buy a stake and become a minority shareholder in Changi Airport Fuel Hydrant Installation Company Pte Ltd (CAFHI), the fuel storage and infrastructure joint venture in the airport, in order to be able to provide blended Neste MY Sustainable Aviation FuelTM directly to airlines at Singapore Changi Airport. The fulfillment of customary closing requirements is a condition of the transaction.

SAF is frequently cited as a crucial component in reaching the challenging emission reduction targets set by the aviation sector. Neste is also building a global network of airports where it has the capacity to supply SAF straight into aircraft to help its aviation customers achieve their climate commitments by reducing their emissions with SAF. This network of airports, which includes San Francisco (SFO), Los Angeles (LAX), Amsterdam (AMS), and Helsinki Airport (HEL) in Finland, is expanded by Singapore’s Changi Airport. Neste is also expanding the availability of SAF outside of its own airport network by supplying it to various fuel marketing organizations.

When compared to utilizing fossil jet fuel, using Neste’s SAF reduces greenhouse gas emissions by up to 80% over the fuel’s lifetime. When Neste’s Rotterdam refinery improvements are finished by the end of 2023 and the Rotterdam refinery expansion is finished by the first half of 2026, Neste’s total SAF production capability will be 1.5 million tons per year.