July 3, 2022 [Reuters] – Finnish biofuel producer Neste (NESTE.HE) said on Monday it would invest 1.9 billion euros ($2.01 billion) in the Dutch port of Rotterdam for its next renewable products refinery, citing growing demand as climate change concerns intensify.

Neste had delayed the project in April, saying the company was not ready to proceed given the geopolitical situation and possible implications for costs.

Neste has bet heavily on renewable fuels as fossil fuel majors increasingly enter the market, pushing up costs for used cooking oil and discarded animal fat.

The Rotterdam refinery would expand Neste’s renewable product capacity by 1.3 million tons per annum, the company said, adding it aims to start up the new unit during the first half of 2026.

The investment will increase Rotterdam’s total renewable product capacity to 2.7 million tons annually, including 1.2 million tons for sustainable aviation fuel, the statement said.

Benefiting from higher energy prices due to the war in Ukraine, Neste earlier this month raised its second-quarter outlook, citing exceptional margins for gasoline and diesel in northwestern Europe.

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