Finnish renewable fuels producer Neste’s renewable fuel sales volume set a record in the second quarter of this year despite weaker margins.
Sustainable aviation fuel (SAF) sales were up nearly 80% when compared to the first quarter of 2025, supported by increased production capacity at Neste’s refinery in Rotterdam, the Netherlands, the company said on 24 July.
Comparable earnings before interest, tax, depreciation and amortisation (EBITDA) for the renewables segment were €174M (US$201.4M), up from €152M (US$176M) during the second quarter of last year.
The increase was due to higher sales volumes, partially offset by weaker margins, according to Neste president and CEO Heikki Malinen.
The comparable sales margin for renewables was US$361/tonne, down from US$382/tonne, while sales volumes set a new quarterly record at 1.096M tonnes, up from 955,000 tonnes during the second quarter of last year.
“During the second quarter, … we saw positive developments in the biofuel regulation both in the USA and EU, largely supporting long-term renewables demand. However, the market environment was volatile as geopolitical and global trade tensions continued to impact commodity prices and exchange rates, and we expect this to continue,” Malinen said.
Approximately 73% of renewables volumes were sold to the European market, with 27% sold to North America, compared to 49% and 51% respectively during the second quarter of 2024.
With renewable diesel reference prices climbing in Europe towards the end of the second quarter, Neste said more capacity was directed to serve this market.
Neste produced approximately 844,000 tonnes of renewable diesel during the second quarter, down from 858,000 tonnes during the same period the previous year.
SAF production expanded to 290,000 tonnes, up from 164,000 tonnes, with production of other renewable products at 25,000 tonnes, up from 24,000 tonnes.
Renewable diesel sales volumes totalled 836,000 tonnes during the second quarter, down from 858,000 tonnes, SAF sales reached 233,000 tonnes, up from 65,000 tonnes, and sales of other renewable products fell to 27,000 tonnes, down from 32,000 tonnes.
The use of waste and residue feedstocks for the quarter was 96%, up from 88% during the same period the previous year. Neste’s own renewables production facilities had an average utilisation rate of 81%, unchanged from the second quarter of 2024. Production at the Martinez facility in California increased quarter-over-quarter, as planned, supported by improved US market conditions, the company said.
At the time of the report, Neste said it expected its full year renewable sales volumes for 2025 to be up compared to the previous year.
