Neste acquires another waste oil business in the US, Chemical Engineering

November 21, 2022 | By Mary Bailey

Neste Corp. (Espoo, Finland) has agreed to acquire the US cooking oil (UCO) collection and aggregation business and related assets from Crimson Renewable Energy Holdings, LLC. The deal includes shares of SeQuential Environmental Services, LLC and Pure, LLC, as well as UCO’s processing plant in Salem, Oregon. The transaction is subject to customary closing conditions and regulatory approval.

“This acquisition further strengthens Neste’s presence and operations in the United States. We continue to execute on our renewable energy growth strategy by expanding our renewables platform to the US West Coast, which is also home to a future renewable diesel co-production facility in Martinez, California and a key market to serve our customers. Together with Mahoney Environmental, this business will form UCO’s nationwide collection and aggregation network. I look forward to welcoming a professional team and high-quality operations to contribute to Neste’s operations in North America,” says Mati Lemus, President and CEO of Neste.

“I want to thank our SeQuential team for their invaluable efforts and contributions in building the leading UCO collection and aggregation business on the US West Coast. Joining Neste is a great opportunity for this team to further develop their UCO business and operations with a leading producer of renewable fuels,” says Harry Simpson, President and CEO of Crimson Renewable Energy Holdings.

As a result of the transaction, Neste acquires a leading UCO gathering and processing business on the US West Coast, covering gathering, logistics and storage of UCO in California, Oregon and Washington. Together with the previous acquisitions of Ecological Mahony and Agri Trading in the united states I. Kh. Demeter in the Netherlands, and Walco Foods in Ireland, the transaction continues to enhance Neste’s global raw materials platform and supports Neste’s goal of serving customers with a growing global need for renewable products.

Neste currently has a global production of renewable products of 3.3 million tons per year. Neste’s renewable diesel joint venture with Marathon Petroleum, Martinez Renewables in Martinez, California, is expected to begin production in early 2023. The pre-treatment facilities are expected to be operational in the second half of 2023, and once completed, Martinez Renewables is expected to increase Neste’s renewable energy generation capacity by just over 1 million tonnes (365 million US gallons) per year.

Neste’s ongoing refinery expansion project in Singapore and Martinez Renewables will increase total renewable production to 5.5 million tonnes by the end of 2023. Once complete, the expansion project at Neste’s Rotterdam refinery in the Netherlands will further increase the company’s total capacity for renewable products. to 6.8 million tons by the end of 2026. Neste acquires another waste oil business in the US, Chemical Engineering

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