World News
Neste to Grow Renewable Fuel Production at Singapore Plant
Finnish refiner Neste is to double output at its Singapore plant to meet what is says is a rising demand for renewable energy.
Waste residues, such as fish fat from fish processing waste, are used to produce fuel and the firm is aiming to capitalise on the global growth in diesel and jet fuel consumption, according to a Reuters report.
The expanded plant in Tuas, in the western part of Singapore, is expected to be ready by the first half of 2022, where it will produce renewable versions of both products.
The investment, which is Neste's single, biggest to date, will increase the refiner's renewable fuel output by up to 1.3 million metric tonnes a year from the current 1 million.
Neste, which currently makes renewable fuels from facilities in Singapore, Rotterdam and Porvoo, Finland, is also starting up a company in Shanghai to source waste residues for export to Singapore, according to the report.
With the lower sulfur cap for bunker fuel in place from the start of next year, demand for distillates, including diesel fuel is expected to rise either as bunker fuel or as blending material to produce lower sulfur fuel oil.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 556.00 | 9.50 | 674.00 | 4.50 |
| Rotterdam | 507.00 | 5.00 | 663.50 | 12.50 |
| Houston | 549.50 | 2.50 | 677.00 | 5.00 |
| Fujairah | 548.50 | 7.00 | 748.50 | 4.50 |
| Global 20 Ports Average | 580.00 | 3.50 | 761.00 | 1.50 |
| Global 4 Ports Average | 540.00 | 6.50 | 691.00 | 6.50 |
| Global Average Bunker Price | 625.50 | 7.00 | 809.50 | 1.50 |
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