Foundation stone ceremony at Neste Oil's NExBTL renewable diesel plant in Singapore

Taken from: Fox Business News

Friday, March 06, 2009

ESPOO, FINLAND, Mar 06, 2009 (MARKET WIRE via COMTEX) ----- project proceeding on schedule and budget

Neste Oil held today a Foundation Stone Ceremony to officiate the construction of its EUR 550 million NExBTL renewable diesel plant in Singapore. Neste Oil's President and CEO Mr Matti Lievonen was in attendance, and Mr Lim Hng Kiang, Minister for Trade and Industry, Singapore was the Guest-of-Honour at the event.

"The construction of our NExBTL renewable diesel plant in Singapore is proceeding on schedule and on budget. The market has been highly unpredictable in the past year but the Singapore plant plays an important part in our long-term strategy for growth, and our commitment to the project remains solid. We are very grateful to the local government for the support they have given us and look forward to when the plant is officially inaugurated in 2010," stated Mr Matti Lievonen.

Upon completion in 2010, Neste Oil's renewable diesel plant in Singapore will be the largest in the world with an annual capacity of 800,000 metric tons. Neste Oil's patented NExBTL technology allows flexible use of any vegetable oil or animal fat in the production of NExBTL renewable diesel, the cleanest diesel in the world. NExBTL-diesel is the only renewable diesel in the world that is fully compatible with existing diesel engines and logistics systems. The use of NExBTL-diesel significantly reduces greenhouse gas and tailpipe emissions compared to even the best fossil fuels, thereby contributing to better air quality. Feedstock, to be used at the NExBTL renewable diesel plant, are animal fat, palm oil and other types of vegetable oils. When fully operational, the plant will employ around 100 people.

Neste Oil Corporation

Osmo Kammonen Senior Vice President, Communications

More information: Mr Jarmo Honkamaa, Deputy CEO and Executive Vice President, Renewable Fuels, tel. +358 10 458 4758

About Neste Oil

Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company's strategy is based on growing both its oil refining and premium-quality renewable diesel businesses. Neste Oil's refineries are located in Porvoo and Naantali and have a combined crude oil refining capacity of approx. 260,000 barrels a day. The company had net sales of EUR 15 billion in 2008 and employs around 5,200 people. Neste Oil's share is listed on the NASDAQ OMX Helsinki. www.nesteoil.com.

About NExBTL renewable diesel

NExBTL renewable diesel is an advanced fuel, based on renewable raw materials, that performs more efficiently and has a lower level of environmental impact than fossil diesel or FAME-type biodiesel. Neste Oil requires its raw material suppliers to commit to responsible and sustainable production methods. Feedstock of this type ensures that NExBTL renewable diesel has a 40-60% lower level of greenhouse gas emissions over its entire lifecycle compared to fossil diesel. NExBTL renewable diesel can be blended with conventional diesel fuel or used as such, and it is suitable for all diesel engines.

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Copyright Copyright Hugin AS 2009. All rights reserved.

SOURCE: Neste Oil Oy

= = =

From The Business Times, Singapore

Growing Market for Singapore Renewable Diesel Plant

By RONNIE LIM

OTHER investors may be scrapping their projects but it's flashing 'green' for Neste Oil's $2.4 billion investment in Singapore and Rotterdam. The Finnish giant is brimming with confidence about its two renewable-diesel refinery plants that cost $1.2 billion apiece and that will start operations in 2010 and 2011 respectively.

DOING THE SPADE WORK (From left) Mr Honkamaa, Mr Lim, Mr Lievonen and Neste Oil managing director Olli Virtas laying the foundation for Neste Oil's renewable diesel plant in Singapore

In fact, it is already considering adding second lines at both to produce either more renewable diesel, or even renewable jet fuel for aircraft.

'We have no other competitor in 2G, or second-generation, biodiesel manufacturing,' Matti Lievonen, Neste's president and CEO, told media after a foundation stone-laying ceremony at its Tuas site. The two plants, when completed, will make Neste - until now, mainly a traditional oil refiner - the leading global producer of renewable diesel.

Both plants are 'on schedule and on budget', he said. Financing is not an issue at all, as Neste has a credit line of 1.6 billion euros (S$3.1 billion) until 2011, plus it has over 500 million euros in cash flow from last year.

Besides, given growing environmental concerns, the European Union is expected to pass legislation enforcing greater use of such renewable fuels soon. 'This is the whole logic for our renewable diesel - a market which mandates use of biofuels,' said deputy CEO Jarmo Honkamaa.

After earlier targeting 5.75 per cent mandatory biofuel use by 2010, the latest EU directive is that measures must be taken by all member countries to replace a minimum 10 per cent of all transport fossil fuels (petrol and diesel) with biofuels by 2010.

The Neste officials said this in response to questions on whether today's low oil prices of around US$40 - which means that normal diesel is roughly half the price of biodiesel - would impact the economics of its Singapore and Rotterdam biodiesel investments.

Each plant will produce 800,000 tonnes per annum (tpa) of renewable diesel - the largest such facility in the world - from one million tpa of renewable materials comprising vegetable oils such as palm oil, animal fat or tallow.

Neste - which operates two crude-oil refineries in Porvoo and Naantali with a total capacity of 260,000 barrels - already has a 170,000 tpa biodiesel plant at Porvoo, and is set to start up a second biodiesel plant of similar scale there this July.

'Neste is sourcing its biodiesel raw materials like palm oil and tallow on a group-wide basis, and is in talks with suppliers, like for instance, for jatropha in Thailand,' Mr Honkamaa said. Depending on the costs, over half of each plant's raw materials can be palm oil, with the rest tallow, although the biofuel refineries are completely flexible in their feedstock mix.

Neste is already in talks with big oil companies to take biodiesel from its Singapore and Rotterdam plants. 'We don't see a challenge in (securing) markets, the challenge is more in raw materials,' Mr Honkamaa said.

Speaking at the ceremony, Trade & Industry Minister Lim Hng Kiang said that Neste's project 'affirms Singapore's position as a trusted business destination', adding that 'the outlook of the energy and chemicals industries remains positive'. Underlying this, he said, are two main factors: the increasing emphasis on addressing environmental challenges and the Asian growth story, especially in China and India, and increasingly, Asean.

South Korea to Produce Wood-Pellet Fuel in Indonesia

Taken from: Emirates News Agency

Mar 7, 2009 - 08:22 - SEOUL, 7 March,2009 (WAM) -- South Korea signed an agreement with Indonesia Friday to produce wood pellets that are cheaper and cleaner to burn than fossil fuels, Yonhap News reported.

The memorandum of understanding between the Korea Forest Service and Indonesia's Forest Ministry calls for 200,000 hectares of forest land to be set aside to produce wood for pellets starting in late 2010.

The Daejeon-based state forestry service said that the deal signed on the sidelines of President Lee Myung-bak's visit to the Southeast Asian country gives the South Korean government a free 99-year lease on Kalimantan Island, with Indonesia benefiting from investment that can lead to jobs for its people.

"The forest service will provide administrative support, with the actual building of the pellet-making facilities and everyday operations to be carried out by private companies," Yonhap quoted an official as having said in its dispatch from Jakarta,. He said the size of fuel production will be determined after the forest has been examined in detail to check for usable plants.

"The process will involve both cutting trees and planting to make up for those used as fuel," he said.

Wood pellets are made from finely ground and compressed wood that is cheap to use, has relatively good fuel qualities and does not release as much greenhouse gas as refined fuel products.

The cylinder-shaped pellets on average have lower heat value than diesel fuel, liquefied natural gas (LNG) and kerosene, but could provide an 99-square-meter living space with adequate heat for 1.8 million won (US$1,160) per year.

This is better than the 4.2 million won needed when burning diesel, 2.0 million won for LNG and 3.0 million won for kerosene.

The pellets have also been found to produce 12 times less greenhouse gases than diesel fuel.

At present, South Korea's wood pellet consumption is small and generally limited to use in some rural communities and greenhouses. It has only one operational wood pellet facility, with two more to be opened within the year. The majority of products used are imported from China and Canada.

The 200,000 ha deal, meanwhile, increased the size of forest land leased by South Korea in Indonesia to 700,000 ha.

The 500,000 ha leased in 2006 under a similar long-term arrangement is used by companies like SK Networks Co. and Inni Joa Co. to grow timber for wood products and palm oil.

WAM/MAB

How REACH impacts electronics components use

Reference Link:
http://www.allbusiness.com/government/international-organizations-bodies/12283847-1.html

How REACH impacts electronics components use: seven steps on navigating the new set of regulations for those importing assemblies to the EU.

By Schultz, Steve
Publication: Circuits Assembly
Date: Sunday, March 1 2009

The requirements of the European Union's REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) Directive are massive and involve manufacturers and importers of chemicals, compounds and articles. Here are seven basic points about REACH that every manufacturer of electronics assemblies selling product in Europe must understand.

1. No data, no market. If your company builds electronic assemblies for import into the EU, you are directly impacted by the REACH requirements. Failure to comply with these new regulations risks having your products denied access to the European market.

2. Reporting requirements. Electronic components are "articles" under the definition of REACH, as are electronics assemblies, and are subject to specific reporting requirements with regard to Substances of Very High Concern (SVHCs). The REACH Directive requires that SVHCs be controlled, reported, and eventually phased out in favor of safer materials when it is technically and economically feasible.

The manufacturer of electronics assemblies must determine if the electronic components used in their products contain any of the SVHC restricted chemicals/substances. If present, REACH requires that importers to Europe of articles, or manufacturers of articles in Europe, provide information on SVHCs greater than 0.1% w/w in the article to the immediate downstream recipient and to any other consumer that requests it. This requires the manufacturer to aggregate the total weight of each SVHC contained in its finished product and represent it as a percentage of the total weight of its product. This information must be provided free of charge and made available within 45 days.

Starting in 2011, manufacturers and importers also will be required to report this information directly to European Chemical Agency (ECHA) if it is greater than 0.1% w/w and the manufacturer imports greater than one metric ton of the SVHC into Europe each year. However, manufacturers need not report this information if they can demonstrate that the substance is already registered for the same use, or prove that the SVHCs in their product cannot be released during its lifecycle or during the disposal process.

3. Why the concern about SVHCs? SVHCs have major health consequences. These are chemicals or substances that have been demonstrated to be carcinogens, mutagens and reproductive toxins; or they have been identified as being persistent, biocumulative and toxic; or fall into a category considered "Substances of Equivalent Concern," which includes endocrine disruptors.

ECHA identifies SVHCs on what the industry has come to call the "SVHC Candidate List" (Candidate Substances for Authorization). The initial "Candidate List" includes fifteen chemicals/substances and can be accessed at http://echa.europa.eu/chem_data/candidate_list_table_en.asp.

Over time, many more chemicals and substances will be added to the Candidate List, with some experts estimating as many as 1,500 SVHCs eventually will be identified.

4. Sunset date. At some point in the future, ECHA will designate a "Sunset Date" for each SVHC. After that date, manufacturers will be required to stop using the component containing the SVHC or to obtain specific ECHA authorization to continue using the component. Firms seeking authorization to continue using an SVHC after the Sunset Date must demonstrate that the socioeconomic benefits from its use outweigh the SVHC risk to society.

To maintain a global market for their products, component manufacturers will eventually have to replace SVHCs with substitute chemical/substances. If the electronics industry's experience with the European RoHS directive is any indication, this Sunset provision will result in the discontinuance of many components and the performance requalification of others.

5) No part number change. There is no indication component manufacturers will change part numbers as a result of the migration to substitute chemical/substances, and there is no official "REACH Compliant" designation for the component as there was with RoHS-compliant components. As such, there will be no component marking or labeling, making identification between a part number containing the SVHC and the same part with a substitute chemical/substance problematic. This situation becomes enormously more complicated when you consider that a component may have multiple SVHCs that are phased out of the component manufacturer's supply chain at different points in time.

6. Obtain SVHC information from component manufacturer.

Only the component manufacturer is in position to provide detailed SVHC data on the electronics components that they manufacture. They control the manufacturing process, and only they are in position to know when their internal processes change or when they change raw material vendors. The industry will be best-served if component manufacturers work together to uniformly list SVHC data openly on their websites using standard material data reporting formats.

7. Establish a REACH task force. As with the RoHS transition, many firms are underestimating the time, expense and energy necessary to meet all REACH requirements. REACH is much more complicated than RoHS and will grow in complexity over time. Each company in the electronics industry, if not already doing so, should establish a cross-functional task force composed of engineering, quality, purchasing, operational, finance, marketing, IT, legal and other personnel to begin tackling this latest EU environmental initiative.

While REACH is expected to have a significant long-term impact on the electronics supply chain, distributors can help minimize the impact. Distribution plays a central role in the supply chain and the unique ability to facilitate communication between OEMs and component makers. Further, diverse technical resources offered by distributors can help guide OEM design engineers by offering component options that don't include non-registered chemicals or SVHCs. By establishing open communication channels early on with authorized distributor partners, manufacturers and importers of chemicals, compounds and articles can help minimize the possibility of future supply chain disruptions.


                                          # # #

Steve Schultz is director, strategic planning and communications, Avnet Logistics (avnet.com); steven.schultz@avnet.com.

= = =