Neste ©
Neste ©

Finnish renewable fuels producer Neste reported an increase in total production of renewable diesel and sustainable aviation fuel (SAF) in 2023 compared to the previous year.

Production of renewable diesel in 2023 had increased by more than 15% while SAF production had increased by almost 59% compared with 2022, SAF magazine wrote on 21 February.

The company produced almost 3.27M tonnes of renewable diesel last year, up from 2.83M tonnes in 2022, while SAF production totalled 251,000 tonnes, up from 158,000 tonnes.

“The sales volume of renewable diesel and sustainable aviation fuel in third quarter 2023 amounted to 843,000 tonnes in line with our target,” Neste president and CEO Matti Lehmus said on 8 February when announcing the company’s fourth quarter and full year results. In third quarter 2022, Neste’s renewable diesel and SAF sales totalled 779,000 tonnes.

The company’s Renewable Products segment announced a full year EBITA of €1.9bn (US$2bn), compared to €1.76bn (US$19.1bn) in 2022.

The Renewables Product segment increased its comparable sales margin to US$863/tonne, up from US$779/tonne, Lehmus said.

“This was enabled by successful global optimisation across feedstocks, markets and products,” he said.

Sales of renewable diesel and SAF, which totalled 3.3M tonnes in 2023, were impacted by the delayed ramp-up of Neste’s Singapore expansion and the Martinez joint operation, Lehmus said.

In the fourth quarter, the Singapore new utilisation increased according to the company’s expectation to approximately 75%, he added.

The company’s Martinez Renewables facility in California was currently operating at slightly below 50% nameplate capacity, following a fire late last year, Neste said.

Work was ongoing to proceed with repairs to ensure safe and reliable operations, the company added.

Lehmus also noted that the share of waste and residue feedstocks remained high throughout 2023, averaging 92% of total renewable material inputs, down slightly from 95% the previous year.

Overall, Neste reported comparable EBITDA of €3.46bn (US$3.75bn) for 2023, down from €3.54bn (US$3.84bn) the previous year. Comparable earnings/share were €2.88 (US$3.13), down from €3.04 (US$3.30).

For 2024, Neste expects total sales volumes for its Renewable Products segment to increase, reaching approximately 4.4M tonnes, with SAF volumes expected in a range of 500,000 tonnes to 1M tonnes.