Neste to Sell its Fuel Retail to Russian PJSC Tatneft

Neste Corporation has signed an agreement to sell its fuel retail business consisting of 75 fuel stations and a terminal in St. Petersburg region to PJSC Tatneft, one of the leading integrated oil and gas companies in Russia.

The divestment has no impact on Neste’s Marketing & Services’ operations in Finland and the Baltic countries.

“Neste targets to become a global leader in renewable and circular solutions. The divestment of Russian fuel retail business will enable us to focus on our strategic priorities,” says Neste’s President and CEO Peter Vanacker.

“Over the years we have developed the operations in St. Petersburg area into a successful business with approximately 1,000 employees who are known for their outstanding customer service and commitment to high health, safety and environmental standards.

We are happy that Tatneft is keen to develop our fuel retail business in Russia further,” continues Vanacker.

“Neste has an extensive network of over 1,000 stations in Finland and in the Baltic countries. We focus on developing our solutions and services in Finland and the Baltic countries, where we can supply Neste MY Renewable Diesel and other high-quality fuels from our own refineries,” says Panu Kopra, Executive Vice President of Marketing & Services business unit.

Nail Maganov, the General Director of Tatneft, said: “Tatneft’s retail network is one of the five largest Russian chains with more than 600 own petrol stations.

The retail sales strategy focus is on the realization of high-grade fuels produced at our state-of-the-art refinery TANECO and provision of high quality service to our customers, including convenience store services (i.e., café, shops).

The acquisition of Neste’s retail business in the North Western Russia, which is one of the highest priority regions for Tatneft, is a significant contribution to the achievement of our strategic goals, including the marketing of approximately 50% of our own produced fuels domestically.

One of the key priorities in developing and operating Tatneft’s retail network is to minimize environmental impact.

Neste is one of the leaders in this field in Russia, which would allow us to expand and promote the best practices in this area throughout our operation”.

Pursuant to a separate agreement between Tatneft and Neste following the acquisition the retail network will continue to operate under the Neste brand for up to 5 years.

The parties have agreed that the transaction price shall remain confidential. The transaction will not have a material effect on Neste’s and Tatneft’s respective financial positions.

The completion of the divestment is subject to the approval of the Russian competition authorities and the transaction is estimated to be completed by the end of 2019.

REFS

Neste to divest its fuel retail business in Russia and sell it to PJSC Tatneft

Neste’s Zero Island Project Cuts Emissions on Lidö by 78%

Sweden is aiming to become climate neutral by 2045. However, it has been estimated by the UN Intergovernmental Panel on Climate Change (IPCC) that we may have as little as twelve years to tackle climate change. To examine what it takes to reduce CO2 emissions as fast as possible, Neste and its partners set to turn the island of Lidö in the Swedish archipelago into a climate neutral Zero Island in just twelve months. As a result of the project, the island’s emissions were brought down by an impressive 78 percent from their previous levels.

“Sweden’s climate plans are ambitious, but the clock is ticking. In the fight against climate change, we need all possible means. This includes new partnerships and the will to work towards a shared vision of decreasing emissions and developing sustainability. The Zero Island project proves that if we work together as institutions, companies and individuals, we can change the world a lot quicker than we think.” says Carl Nyberg, Neste’s Executive Vice President in Renewable Road Transportation.

The making of Zero Island

Turning Lidö into a climate neutral Zero Island was a team effort. Neste tapped into the expertise of cleantech and sustainability specialists from Solved and Aktea and worked closely with Skärgårdsstiftelsen to make sure none of the natural values were compromised. The solutions chosen for the island included using Neste MY Renewable Diesel in vehicles as well as in Räfsnäs Sjöstranport ferry traffic to the island, and Fortum’s solar power solutions. Several solutions helped improve energy efficiency and reduce waste, and recycling was given extra thought. The island also switched to using fossil free green electricity.

Overall, a combination of the different solutions and a switch to green electricity brought the island’s annual carbon dioxide emissions down from 180 tonnes CO2e to 40 tonnes CO2e. The residual emissions are compensated through a Gold Standard verified emission reduction program.

“Zero Island inspires us to rethink the way we are used to travelling and tangibly demonstrates how emissions can be reduced in several areas,” says Ossian Matthiesen from Klimatanalytiker Tricorona, an environmental consultancy behind the project’s emission calculations.

Accommodation and food are aspects many of Zero Island’s visitors are interested in. Nolla – the Zero Cabin, an Airbnb favorite, will let visitors experience climate neutral living and the sustainable Zero Menu will give visitors a taste of local ingredients and star chef Jonas Svensson’s ingenuity, for just a quarter of the average carbon footprint of an equivalent meal.

“With Zero Island we want to make sure our children will be able to enjoy the archipelago as we have, but we also want to show people that making responsible choices doesn’t mean you have to compromise on your holiday experience, but that simplicity and purity can actually make the experience stronger.” Olle Tejle and Hugo Olofsson, the entrepreneurs running Lidö explain.

What will the future of Zero Island hold?

The project doesn’t end with the island becoming climate neutral, as a sustainable future also requires changes in our everyday lives and in our mindset. Zero Island will continue to educate people about climate neutral solutions and make it easier for people to make sustainable choices. The island will host Zero Vacations, where everything from accommodation to food is designed to produce as little emissions as possible, and the Zero Menu will be available to thousands of visitors every year. Next summer will also see the Island’s first climate neutral Zero Weddings.

A part of Journey to Zero initiative

By building a cleaner future for the island of Lidö, Neste wants to encourage everyone to make their own contribution for a better tomorrow. Journey to Zero is Neste’s the ultimate quest for a better future. Together with our partners, we want to explore and exercise solutions that drive the world towards a fossil free future. Follow our journey at: https://www.neste.com/journeytozero/

REFS

Neste’s Zero Island project cuts emissions on Lidö by 78%

Bio-Based Diesel Fuels like Neste MY Renewable Diesel Deliver Largest Carbon Emission Reductions for California Transportation Sector

HOUSTON (May 30, 2019) – According to new data gathered by the California Air Resources Board’s (CARB) Low Carbon Fuel Standard program, bio-based diesel fuels like Neste MY Renewable Diesel™ deliver the state’s biggest reduction in carbon emissions for the transportation sector.

In 2018, the use of these bio-based fuels reduced 4.3 million tons of carbon dioxide in California. This amount surpassed the reduction from ethanol for the first time since the program started in 2011. In that time renewable diesel and biodiesel have reduced CO2 emissions by over 18 million tons.

Neste MY Renewable Diesel is a low-carbon fuel produced from 100% renewable and sustainable raw materials, primarily wastes and residues. The fuel cuts greenhouse gas emissions by up to 80%* and reduces local engine-out emissions, all while enhancing fleet performance. Neste MY Renewable Diesel is a drop-in alternative to fossil diesel. It is fully compatible with current fuel distribution infrastructures and suitable for all diesel engines.

“This study from CARB is a welcome confirmation: renewable diesel can significantly reduce greenhouse gas emissions and make an immediate contribution to the reduction of California’s carbon footprint all while using existing infrastructure and without further investments,” said Jeremy Baines, Vice President of Sales, Neste US Inc.

“Transportation is currently the leading cause of carbon emissions in the US, and as such is a conspicuous starting point for change. As this study demonstrates, diesel operators can reduce their lifecycle greenhouse gas emissions already today, simply by switching to renewable diesel. At Neste, we believe strongly in renewables, and we have made significant investments to increase our renewable products production capacity by 2022.”

Neste is the world’s largest producer of renewable diesel refined from waste and residues, and the largest supplier of renewable diesel to the state of California.

 

REFS