Neste Oil strikes biopropane deal with SHV Energy

Oct 17, 2014 - Finnish renewable diesel supplier Neste Oil Corp (HEL:NES1V) said Thursday it has secured a contract for the supply of biopropane to specialised energy group SHV Energy NV.

The deal calls for Neste Oil to deliver some 160,000 tonnes of renewable fuel, produced at its under-construction Rotterdam refinery, to SHV Energy over four years. The Dutch firm, on its part, will distribute it on several European markets, including in France, Germany, the Benelux region, Scandinavia and the UK.

The EUR-60-million (USD 76.8m) biopropane facility at Neste Oil’s refinery in Rotterdam will able to produce between 30,000 tonnes and 40,000 tonnes annually. It is expected to commence operations by end-2016. Neste Oil previously explained that the facility will purify and separate biopropane from the sidestream gases produced by the refinery.

Engineering and project management firm Neste Jacobs is in charge of the engineering, procurement, and construction (EPC) activities in Rotterdam.

Biopropane has similar properties to fossil propane and can be used in existing liquefied petroleum gas (LPG) applications.

(EUR 1.0 = USD 1.281)

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