KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Klima-, Energi- og Forsyningsudvalget 2020-21
KEF Alm.del Bilag 54
Offentligt

Fueling the future of sustainable

transport in Denmark

Driven by our purpose

dedicated

professionals

committed to

our purpose

WE ARE

4,400

3RD MOST

SUSTAINABLE

COMPANY

We have been

selected as the

world’s

comparable

operating profit of

which

82%* came from our

renewables

WE REACHED

1,962 M€*

*Figures at the end of year 2019.

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Our strategic priorities

Our climate targets

1. To help reduce

our customers’

greenhouse gas

emissions by at least

20 million tons

annually by 2030

2. To reduce

the carbon footprint

of our own

production ahead of

EU’s climate and

energy targets

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

RENEWABLE ROAD

TRANSPORTATION

In 2019, Neste’s renewable products helped

customers to reduce greenhouse gas emissions by a

total of 9.6 million tonnes or the removal of 3.5

million passenger cars from the roads for a full year

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Growing trend in global road transportation towards 2030

+10%

Road

transportation

fuel demand

+140M

EVs

Still less than

10% of all

passenger cars

840

Mton

Heavy-duty

transportation

diesel demand +15%

billion

ton CO

Road use ~80%

of transportation

emissions

Note: all figures compared to 2018

Sources: WoodMackenzie, OECD, IEA, EIA

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Global renewable diesel demand

is expected to exceed 20 Mton by 2030

Estimated demand, Mton/a

2020

2022

2030

NORDICS

REST OF EUROPE

NORTH AMERICA

5-8

Potential

upside in Asia

and South

America

9-12

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

In the mid-term the RD supply exceeds the demand

Additional 7 Mt

capacity

announced in the

past 6 months

Source: RD supply forecast based on projects currently announced – a number of projects still subject to final investment decision

Demand forecast based on Neste analysis of existing and proposed regulation

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Our solution:

Neste Renewable Diesel

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Neste Renewable Diesel in 3 points

It is a biofuel that

can help to reduce

greenhouse gas

emissions by up to

90 % compared to

fossil diesel…

… usable as such in

any diesel engine or

any existing

infrastructure or

equipment…

…with the highest

diesel quality that

can lower local

emissions compared

to fossil diesel

(particulates, NOx,

CO…).

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Concawe: a low-carbon fuels scenario in EU provides the

same CO2 reduction as a high EV scenario...

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

… but at half cost to society.

600 Billion €

324 Billion €

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

High ambition level to reduce emissions

in the Nordics

NORDICS

Mandate obligations

Norway

Sweden

Finland

2020

20%

21%

20%

2030

40%

*Ambition

65.7%

30%

REST OF EUROPE

2020 Mandate

France

Italy

3,4

2030 Ambition

15%

22%

1.4 Mton

28%

14%

16.4%

8.5%

Netherlands

Spain

3,4

EU RED II

1) Volumetric mandate. 2) GHG reduction mandate for diesel. 3) Energy content

based mandate. 4) 2030 ambition for renewables share for road and rail

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Progressive climate targets make way for

biofuels in Sweden

Renewable diesel demand is set to grow above 3 Mt by 2030.

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Finnish liquid biofuels mandate for on-road 2021-2030

(This is law! – adopted by the Finnish parliament on 6 Feb 2019)

No double counting

Double counting for

biofuels from

feedstock in Annex IX

22,5 %

25,5 %

20 %

15 %

18 %

19,5 %

27 %

28,5 %

30 %

21 %

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

RENEWABLE AVIATION

We have moved from feasibility to execution.

Capacity of sustainable aviation fuel has been

ramped up to 100,000 tons

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

SAF is an available, easy to use means for

Aviation to reduce GHG emissions

●

Made from renewable raw materials

Quality & performance comparable to fossil jet

Burns clean, less particle emissions

Commercially available and in use

Drop-in solution with existing

infrastructure/aircraft

Produced in Europe & US

→

more capacity

under construction & planned

7 approved production pathways & more to

come

reduces GHG

emissions up to

Over the lifecycle,

Neste MY

Renewable Jet

Fuel in neat form

80%

compared to

fossil fuels

●

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Neste’s SAF is in use on a commercial basis

around the world

SWEDEN & NORWAY

SAN FRANCISCO

Alaska Airlines

American Airlines

JetBlue

Signature

SAS

Lufthansa

KLM

Others

NETHERLANDS

KLM

FINLAND

Finnair

Signature

GERMANY

Lufthansa

Airbus

FRANCE

EBACE

OEMs

Airbus

SWITZERLAND

World Economic Forum,

Zurich Airport

(with Jet Aviation)

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Regulatory changes starting to happen -

creating sustainable fuel demand

AVIATION SPECIFIC BLENDING OBLIGATIONS:

•

Provide demand certainty

•

Not cannibalizing road side market

OPT-IN INCENTIVE SCHEMES:

•

Enable fast scale up of SAF demand

Mandate introduced in 2020

Plans to introduce a mandate in the future (2021-2025) &

Aviation opt-in for road transport mandates in place

Plans to introduce a mandate in the future (2021-2025) &

Opt-in schemes to be implemented from 2021 onwards

(e.g. EU RED II)

Aviation opt-in for road transport mandates in place

Opt-in schemes to be implemented from 2021 onwards

(e.g. EU RED II and Canada Clean Fuel Standard)

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

SAF scale up will proceed in cumulative waves,

as new production pathways are commercialised

Potential exceeds

global jet fuel use

Technical potential

“unlimited”

Up to 10% of global

jet fuel use (35 Mton)

POWER-TO-LIQUIDS

(CO

capture)

TECHNOLOGIES CLOSE TO

COMMERCIALIZATION

(municipal solid waste, lignocellulosic,

etc.)

HEFA

SCALE-UP

(waste and residue oils

and fats as raw materials)

Source: Neste estimates

HEFA = Hydroprocessed Esters and Fatty Acids

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Renewable

raw materials

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Increasing volumes and

share of waste and residues

>80%

WASTE AND RESIDUES

<20%

VARIOUS VEGETABLE OILS

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

We are set to become a global leader in renewable and

circular solutions with a strong focus on innovation

CARBON SOURCES

Recycled

waste

plastic

Ligno-

cellulosics

Municipal

solid

waste

Fatty acids

(NEXBTL)

Algae

Power-to-X

Now

3‒5 years

5‒10 years

RENEWABLE AND RECYCLED HYDROCARBONS

> 10 years

ROAD

Road

TRANSPORTATION

transportation

Aviation

Polymers and

chemicals

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Power-to-X

In March 2020 Neste acquired

a minority stake in the

German cleantech company

Sunfire GmbH,

a leading

developer of Power-to-X

solutions.

The key technology in the

Power-to-X platform is

electrolysis. It enables the

production of emission-free

renewable hydrogen and

conversion of CO2 into fuels,

chemicals and materials.

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Neste is ready to help Denmark achieve its ambitious

climate targets in the transport sector

●

Today our renewable solutions are produced at refineries in Porvoo, Rotterdam, and Singapore.

Neste is increasing its renewable products production capacity in Singapore. The EUR 1.4 billion investment

will increase Neste’s renewable products production capacity by 1.3 million ton/a, bringing the

total global

renewable product capacity close to 4.5 million ton/a in 2022.

The extended refinery is expected to

start operations in early 2023, and further production expansion projects are under review, notably at

Rotterdam.

●

Neste is also setting up supply chains across in order to bring

renewable products to several European

markets and airports.

In addition to Neste, other companies are also entering the market or ramping up

their production.

●

Denmark is well positioned to take a leading role in decarbonizing the transport sector. Global renewable

diesel supply is set to grow and Neste is ready to serve the Danish market.

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Our promise:

We will help our

customers reduce their

greenhouse gas emissions

by at least 20 million tons

every year by 2030.

Our promise:

Our own production will be

Carbon neutral by 2035.

KEF, Alm.del - 2020-21 - Bilag 54: Henvendelse af 3/11-20 fra Neste om avancerede biobrændsler ifm. foretræde for udvalget

Thank you!