European Commission's proposed changes to biofuel legislation support Neste Oil's continuous efforts to extend raw material portfolio
(Thomson Reuters ONE) -
Neste Oil Corporation
Press release
17 October 2012 4:00 p.m. (EET)
European Commission's proposed changes to biofuel legislation support Neste
Oil's continuous efforts to extend raw material portfolio
The European Commission has today published information on its proposal for
updating biofuel legislation in the EU. The Commission is proposing that the EU-
level mandated bio content contained in the current Renewable Energy Directive
should be maintained at its current level, requiring 10% of the energy content
of traffic and transport fuels to come from renewable sources by 2020. Neste Oil
considers the Commission's proposal to be a balanced one and sees the ongoing
commitment to mandated bio content as a clear message of support for sustainably
produced biofuels, which represent the most effective means available for
reducing traffic- and transport-related greenhouse gas emissions. It will also
secure existing investments and jobs.
The proposal includes splitting the EU's requirement for 10% mandated bio
content in 2020 into two components, with biofuels produced from food crops
limited to providing 5% of total traffic and transport fuel consumption in
2020, and the other 5% required to come from fuels produced from waste,
residues, or completely new types of raw materials.
Thanks to its NExBTL technology, Neste Oil can produce premium-quality renewable
fuel from a wide range of raw material inputs. Neste Oil has extended the range
of raw materials that it uses in recent years, increased its use of waste and
residues, and invested in R&D on new raw materials. In 2011, already 41% of
Neste Oil's raw material inputs consisted of waste and residues. The
Commission's proposal is in line with Neste Oil's strategy of steadily extending
the range of its raw material inputs. Neste Oil's diverse raw material base
gives the company a competitive advantage compared to other biofuel producers
that use food crops as their prime raw material.
Neste Oil considers the 5% ceiling on the use of food crop-based inputs an
effective and sufficient way of managing the risks associated with indirect land
use change (ILUC) related to biofuels. As a result, the demand for food crop-
based inputs for producing biofuels is likely to remain at roughly current
levels.
Neste Oil believes, however, that the double or quadruple valuation given to
certain raw materials for establishing compliance with mandated bio content
contained in the Commission's proposal would undermine efforts to meet
greenhouse gas emission reduction targets. The use of this type of valuation
would reduce the use of waste and residues by the biofuel industry in absolute
terms, even though the greatest possible use of these materials would achieve
the largest savings in terms of these emissions as measured over biofuels'
entire life cycle. The Commission's proposal in respect of residues also needs
to be further clarified.
A capital-intensive industry such as the biofuel sector needs a consistent and
stable legislative environment that promotes the implementation of the EU's
internal market and free trade. Establishing EU-level targets post-2020,
together with clearer harmonization regarding which renewable raw materials are
considered acceptable, would further support the EU's internal market for
biofuels and free trade generally.
Neste Oil Corporation
Osmo Kammonen
Senior Vice President, Communications, Marketing and Public Affairs
Further information:
Kaisa Hietala, Vice President, Renewable Fuels, tel. +358 (0)50 458 4128
Ilkka Räsänen, Director, Public Affairs, tel. +358 (0)50 458 5123
European Commission's press release: http://europa.eu/rapid/press-release_IP-
12-1112_en.htm?locale=en
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low-
emission, high-quality traffic fuels, and is the world's leading supplier of
renewable diesel. Neste Oil had net sales of EUR 15.4 billion in 2011 and
employs around 5,000 people. Neste Oil's share is listed on NASDAQ OMX Helsinki.
Neste Oil has been selected for inclusion in the Dow Jones Sustainability World
Index and the Ethibel Excellence Investment Register. Neste Oil has been
included in The Global 100 list of the world's most sustainable corporations for
a number of years in succession; and Forest Footprint Disclosure (FFD) has
ranked Neste Oil as the best performer in the oil & gas sector. Further
information: www.nesteoil.com
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Source: Neste Oil Oyj via Thomson Reuters ONE
[HUG#1649981]
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Datum: 17.10.2012 - 15:01 Uhr
Sprache: Deutsch
News-ID 193404
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