Biodiesel Neste Oil

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Biodiesel Neste Oil

• 20.10.2005 HUT

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European vision

• European Biofuel directive (2003/30/EY
• Renewable raw materials to prevent fossile CO2
  emissions
• --gt greenhouse gas emissions reduction
• The availability of Traffic fuels also in
  future
• Opertunities in the countryside and
  systematically pursue a rural develop strategy

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Slow and fast circulation of carbon
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Targets

• Biofuel proportion from the total sales in EU
• (traffic fuels gasoline and diesel )
• Target
• 2,00 during 2005
• 5,75 2010
• 20 2020

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Different kind of Biofuels

• Diesel
• FAME - Fatty Acid Methyl Ester
• RME - Rapeseed Methyl Ester
• NExBTL - Next generation biomass to liquid
• GTL-products (various technologies)
• Gasoline
• Bioethanol
• ETBE, TAEE
• Biogas

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Biofuel Directive

• Directive is not compulsary for member countries
  but all the countries are commited to give a
  progress report yearly
• In 2002 the proportion of biofuels in total
  energy consuption of traffic was only 0,45 in
  Europe
• Biofuel production in some countries in 2002
• Germany 401 000 oil equivalent tons
  (Diesel)
• France 383 000
• Sweden 32 000 (Bioethanol)
• Estimated increase in production in Europe is 2
  Mt /a

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Biodiesel markets in Europe Sales (kt/a) / and
tax relief (/l)
SWE 10 kt/a 0,35/l
Biodiesel Blends B2 SWE, AUT B5 GER, UK,
FRA B30 CZE,FRA B100GER, AUT, ESP,
SWE, (ITA mainly for fuel oil)
UK 30 kt/a 0,30 /l
GER 1000 kt/a 0,47/l
AUT 100 kt/a 0,29/l
FRA 400 kt/a 0,38/l
ITA 300 kt/a 0,40/l
ESP 50 kt/a 0,35/l
Biopolttoaine direktiivin takia tulee lisää
verohuojennuksia
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Neste Oil - Strong Commitment to the
Environment

• Neste Oil has developed front-ranking expertise
  in low-emission traffic fuels, high-quality
  lubricants and components, and the technology
  used for producing them.
• New-technology low-emission biodiesel based
  onrenewable feedstocks.
• Highly efficient production processes, which
  comply with the ISO 14001, OHSAS 18001, and ISO
  90012000 environmental, health and safety, and
  quality standards.

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Neste Oil - Clean Fuels Strategy

• NExBTL Project is a part of Neste Oil strategy
  for cleaner fuels
• Renewable raw-materials for Diesel production
• OWN technology - Neste Oil RD and Neste Jacobs
  
• Engineering know-how of refining processes -
  Neste Jacobs
• Production and blending know how - Porvoo
  refinery
• Utilities at refinery
• ( cooling water, steam, nitrogen, waste water
  treatment, electricity....)

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Refinery based NExBTL unit
Bio Oil
Bio Oil - Rape seed oil Palm Oil Soya
Oil Animal fat
Feed tank
Pretreatment Impurities removal
Acid Caustic Water
Sludge
NExBTL-Process Conversion of fatty
acids to parafins and isoparafins Stabilation

Fuel gas
Hydrogen
Sour water

Mineral oil diesel
Diesel Biodiesel Blends
Diesel tank
Biodiesel tank
NExBTL component sales
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Different aspects of Biofuels

• Environmental issues
• Product quality and engines
• Distribution network
• Production costs

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Environmental issues

• Product life cycle
• Emissions and exhaust gases
• emissions at a site (others than CO2), BAT, EII
• toxic emissions like benzene , PAH, 1,3 butadiene
  
• Biodiversity
• cropping system
• area under cultivation
• fertilizers and pesticides

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CO2 LCA malli ja vertailu
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NExBTLn emission reductions / EN590-diesel
ESC European steady state cycle ETC European
transient cycle
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Scania emission tests NOx/(Particals PM) /
reference diesel (EN 590)
Source Scania Confidential
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Product quality

• The product must be suitable for all kind of
  vehicles
• The product must meet the demand of future
  engines, too
• With traditional biodiesels amount of 5,75 is
  not possible for EN590 quality
• high viscosity, high density
• stability problems
• engine packing materials

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New Bio-To-Liquid (NExBTL) diesel by Neste Oil

• Fully biobased diesel component
• The pure product (B100) meets EN590 except
  density ? 790 kg/m3
• Blends meet EN590 except density at high
  blending
• Good stability (no unsaturated material)
• Low solubility of water
• Excellent cetane booster
• Reduced emissions similar to GTL-diesel
• Aromatics ? 0
• Sulphur free
• Process parametres can be varied for tailoring
  cloud points -5 ... -30C

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NExBTL, GTL, FAME and diesel properties
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Distribution network Production costs

• You better have enought gasoline station to offer
  Biodiesel for customers -- in Germany there are
  1300 stations...
• Consumer price should be comparable to
  traditional diesel price (or lt)
• When volumes are increasing, raw material and
  product logistics is OK consumer prices are
  coming down but still political decisions are
  needed

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Timetable and Cost estimation

• Investment approval 2/2005
• Spring 2005 blasting
• Shut down 2005 - connections at refinery
• Construction installation 2006
• Mechanical completion 15.3.2007
• Oil in spring 2007 on production before summer
  2007
• Happy customers
• Total costs 100 M
• During project 100 - 150 persons
• Place of employment for 10 - 20 new persons

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The team for Biodiesel
Tarja Kaitale Steering Manager Antti Huovila
Project Manager
Refinery team

Neste Jacobs team

Qualified contractors and vendors


Components team

Oil RD team
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Project targets

• EHS
• no severe workplace accidents
• LWIF lt 5 / milj. h
• no hot work ignitions
• no leaks or spills
• strong safety culture at construction site

• Costs
• Budjet
• Reasonable fixed costs and variable costs

• Timetable
• We take into account Porvoo refinery
• shut down 2005 and Diesel Project
• Mechanical completion 15.3.2007
• Oil in April 2007)

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Safety first Good persons make it possible to
build up the worlds best diesel unit