SmartCHEM summit 22nd May 2018

1. From fuels to
plastics and vice
versa - exploring
new opportunities
Dr. Petri Lehmus, VP Research & Development

2. Revenue
€ 13.2
billion
Comparable
operating profit
€ 1.1
billion
Largest owner
the Finnish
State (49.74%)
~ 5,000
employees
in 15 countries
World’s
#1
producer of
renewable diesel
Neste in numbers
2

3. We have transformed from an oil company…
High quality
fossil products
Oil refinery

4. …into a company offering responsible choices
New fossil products
(e.g. Low sulfur
marine fuels)
Neste MY
Renewable
Diesel
Neste MY
Renewable
Jet Fuel
Neste MY
Renewable
Propane
Neste MY
Renewable
Gasoline
Neste MY
Renewable
Isoalkane
Neste My
Renewable
Naphta
Neste MY
Renewable
Propane
Neste Renewable Fuels Neste Renewable Chemicals
Blended products
e.g. ProDiesel,
Futura

5. OUR VISION:

6. Cleaner
fuels
on the
roads
Low-sulfur
bunker
fuel
at seas
Renewable
jet fuel in
the air
Renewable
solutions
for
chemicals
industry

7. Low-carbon Neste MY Renewable Diesel
On average 90%
smaller
greenhouse gas
emissions
Neste MY
Renewable Diesel
produced from
waste and residues
*g CO2eq/MJ. Greenhouse gas balances calculated in accordance with the method defined in the EU RED Directive.
83.8 g*
Conventional
diesel
25.0 g*
Neste MY
Renewable
Diesel produced
from palm oil
8.0 g*

8. 8.3
million tons
Equaling
permanent removal of
from the roads
3 million
passenger cars
Neste’s renewable fuels produced in 2017
reduced carbon emissions

9. Waste and residue feedstock

10. Significant increase in waste and residue usage
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 000
2 000 000
2 200 000
2 400 000
2 600 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Tons

11. 76%
23%
1%
Waste and residues formed nearly 80%
of our renewable raw material inputs in 2017
Waste and residues
(e.g. waste and residue fats from food processing,
technical corn oil)
Palm oil, 100% certified
Other vegetable oils
(e.g. rapeseed oil)
In 2015,
we achieved
capability to use solely
waste and residues as
raw materials in our
processing.
Renewable raw material mix

12. Neste MY Renewable Diesel 100% from waste and residues

13. Expanding the feedstock portfolio further
Waste animal fats,
waste oils, residue
and side streams
Biological
pathways
Thermo-catalytic
pathways
Photo-
synthesis
Short term Long term
Fossil waste
liquefaction

14. Waste plastic
opportunity

15. Recycling efforts increases also waste collection
Bio-plastics are emerging as solution to decarbonize plastics
Significantly increase recycling
Only 14% of plastic packaging currently recycled
Interest in low carbon feedstock
Ref. Adapted from EllenMacArthur Foundation
Waste plastic based feedstock

16. Complementing mechanical recycling and preserving value
of lower quality plastic waste
Re-use
Material recycling
(mechanical)
Energy recovery
Chemical
recycling
Reject
Used for same purpose
Mechanically sorted and
regranulated for use in new
products
Used as feedstock in the chemical
industry to make plastics and
petroleum products
Converted to electricity and/or
heat by incineration
No use, landfilled
Improved
collection
and sorting
creates
increasing
amount
of plastic
material
the quality of
which is too
low for
mechanical
recycling,
but too high
for
incineration
To be
counted to
recycling
targets

17. Neste’s ambition is to
process by 2030
2 Mt/a
waste plastic feedstocks
in its fossil refineries

18. Waste
management
End-user
offering
Focus on accelerating value chain development
Liquefaction
Refining
and upgrading

19. Broadening the offering of responsible choices
New fossil products
(e.g. Low sulfur
marine fuels)
Neste MY
Renewable
Diesel
Neste MY
Renewable
Jet Fuel
Neste MY
Renewable
Propane
Neste MY
Renewable
Gasoline
Neste MY
Renewable
Isoalkane
Neste My
Renewable
Naphta
Neste MY
Renewable
Propane
Neste Renewable Fuels Neste Renewable Chemicals
Blended products
e.g. ProDiesel,
Futura
Bio and low carbon feeds co-processingBio feeds

20. Bioplastic solution

21. The need for decoupling from fossil resources
extends beyond transport
Bio-plastics are emerging as solution to decarbonize plastics
Significantly increase recycling
Only 14% of plastic packaging currently recycled
Ref. Adapted from EllenMacArthur Foundation
Interest in bio-based polymers
Polymers with biocontent

22. Switched from
conventional diesel
to renewable
Strategy to
substantially reduce
their carbon emissions
Carbon neutral
growth from 2020
30% less aircraft
emissions by 2020
100% of plastics in
home furnishes
renewable or recycled
by 2020
Strive to substitute top
crude oil-derived raw
materials
40% less GHG
emissions per sales
by 2020
20% less CO2
emissions by 2020
Strong pull created by progressive consumers and
companies

23. We are inviting leading brand owners to join an initiative
to create a unique, renewable value chain
Crackers Production
partners
Brand ownersRaw materials

24. Bioplastic global production capacity outlook (Mt)
Source: European Bioplastics, Nova Institute (2016)
3.0
2018e
3.6
1.1
2017e
1.1
4.4
4.94.7
1.3
2019e
3.8
6.0
4.7
+7.5% CAGR
4.9
2021e
6.1
1.3
2020e
1.0
3.4
2016
3.2
1.0
1.0
4.0
2015
4.2
Biodegradable
Bio-based/non-biodegradable
4.7% CAGR
8.4% CAGR

25. Proof-of-concept for renewable
PE and PP plastics delivered

26. OUR VISION
Creating
responsible
choices
every day