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Neste Oil fuel station. (Photo Credit: Neste Oil)

Algae oil agreement signed for renewable fuel

Click on the flag for more information about United States UNITED STATES
Tuesday, June 11, 2013, 04:00 (GMT + 9)

Neste Oil, the world’s largest producer of renewable diesel (NExBTL), has signed a contingent commercial off-take agreement with Cellana, an algae biomass developer based in the US. The agreement will enable Neste Oil to purchase Cellana’s algae oil for use as a feedstock in the future for producing renewable fuel. The agreement is contingent on Cellana’s future production capacity and on compliance with future biofuel legislation in the EU and US, among other factors.

Cellana expects to be able to produce algae oil on a commercial scale from late 2015 onwards. Based in Hawaii and California, Cellana has almost a decade of experience in growing oil-rich algae in its pilot- and demonstration-scale facilities in Hawaii using sea water in its photo-bioreactors and open ponds. Samples have shown that Cellana is able to produce algae oil suitable for renewable fuel production by Neste Oil.

“We want to support R&D efforts on new, sustainably produced raw materials and increased production of algae oil, which is one of the most interesting future alternatives in this area. Studies have already shown that algae oil can be used successfully in our NExBTL process.”

“The off-take agreement with Cellana allows us access to commercial-scale volumes of cost-competitive algae oil in the future. This new agreement fits very well with our strategy aimed at extending the range of feedstocks we use for NExBTL renewable fuel,” Lars Peter Lindfors, Neste Oil’s Senior Vice President, Technology.

The agreement between Neste Oil and Cellana is non-exclusive and allows each company to enter into additional agreements with other parties. Neste Oil is involved in university-led algae research projects in Australia and the Netherlands that are testing a range of methods for cultivating algae outdoors.

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