FINLAND/SINGAPORE IN SUSTAINABLE BIODIESEL DEAL

Here’s the problem: Tropical forests in developing nations around the world are being destroyed, many to create palm oil plantations on which fortunes can be made supplying the raw material for biodiesel plants like this.

Here’s the proposed solution: The Roundtable on Sustainable Palm Oil. Spawned by the World Wildlife Fund (WWF) in 2001, it was founded in 2004 and will soon begin certifying biofuels projects which produce palm oil sustainably, avoiding flagrant destruction of precious forests.

Meanwhile, WWF and others search for ways to provide CERs in developing countries for the prevention of deforestation.

Neste Oil to build Singapore biodiesel plant
Eric Watkins, December 3, 2007 (Oil & Gas Journal)

WHO
Neste Oil, Roundtable on Sustainable Palm Oil (RSPO)

WHAT
Neste Oil will construct the world’s biggest biodiesel plant in Singapore.

Logo for the Roundtable on Sustainable Palm Oil (RSPO) (click to enlarge)

WHEN
Plant construction will begin in the first half of 2008. It is expected to be operational in 2010.
- Roundtable certification of sustainable palm oil supplies is not expected before 2008.

WHERE
- Neste Oil is based in Espoo, Finland. The new plant will be in Singapore.
- Roundtable on Sustainable Palm Oil is based in Kuala Lumpur, Malaysia.

WHY
- The Neste Oil plant will have an 800,000 ton/year capacity, use mainly palm oil as its feedstock and cost €550 million ().
- Singapore was chosen because it is the 3rd biggest refining center in the world and a center of product and feedstock flows.
- The plant will operate Neste Oil’s proprietary 2007 NExBTL technology, a new-generation renewable diesel production process that can use any vegetable oil or animal fat as feedstock.
- NExBTL Renewable Diesel is of premium quality. It outperforms fossil fuel diesel in existing vehicles and can be distributed in existing systems.
- When produced from sustainably sourced raw materials, NExBTL Renewable Diesel’s lifecycle greenhouse gas emissions are 40-60% below conventional diesel and its tailpipe emissions are lower.

There's nothing wrong with biodiesel. It's the deforestation to establish palm oil plantations to feed biodiesel plants that is the problem. (click to enlarge)

QUOTES
Neste: “The government of Singapore has played an important role in promoting Neste Oil’s investment, and the Singapore Economic Development Board (EDB) has assisted Neste Oil at every stage of the preparations for the project. The EDB will also support the investment through e.g. R&D support and assistance with recruiting and training personnel.”