HELSINKI (Reuters) - Finnish refiner Neste said on Tuesday its billion-dollar investment in a joint venture with U.S.-based oil company Marathon Petroleum Corp (NYSE:MPC) would make it the world's first and only renewable fuels maker with global capacity.
Marathon Petroleum and Neste announced on Tuesday they would convert Marathon's Martinez, California, refinery into a renewable fuels production facility to make renewable diesel from residues.
"We will be the only global provider of renewable products with a production footprint in North America, Asia and Europe," Neste's Chief Executive Peter Vanacker said in a statement.
The agreement came days after Chevron Corp (NYSE:CVX) announced its acquisition of biodiesel maker Renewable Energy Group (NASDAQ:REGI) Inc for $3.15 billion.
Neste and Marathon Petroleum will also look into the possibility of expanding production into sustainable aviation fuel (SAF) in California, Vanacker told reporters, adding further decisions would depend on how rapidly demand for SAF grows in North America.
Neste plans to start SAF production at a 1.5 billion euro ($1.7 billion) facility investment under construction in Singapore at the end of first quarter 2023.
"Our ongoing Singapore expansion project and this joint venture will increase our total production capacity of renewable products to 5.5 million tons by the end of 2023," Vanacker said.
Neste is also considering investing in a similar facility in the Dutch port of Rotterdam and expects to make a final decision soon.
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