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Neste to Acquire Used Cooking Oil Collection Business from Crimson Renewable Energy — OPIS

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Neste will acquire the used cooking oil (UCO) collection and aggregation business from Bakersfield, Calif.-based Crimson Renewable Energy, the Finnish company announced in a release on Thursday.

As part of the transaction, Neste will also acquire related assets in the U.S., including shares in SeQuential Environmental Services, Pure, and a UCO processing plant in Salem, Ore. According to the release, Neste is the world’s leading producer of renewable diesel and sustainable aviation fuel produced from waste and residue raw materials.

Crimson Renewable Energy is a leading UCO collection and recycling business on the U.S. West Coast, covering the collection, logistics and storage of UCO in California, Oregon and Washington.

Neste previously acquired Mahoney Environmental and Agri Trading in the U.S., IH Demeter in the Netherlands and Walco Foods in Ireland as part of an aim to enhance its global raw materials and sourcing platform.

“This acquisition further strengthens Neste’s presence and operations in the United States,” Neste president and CEO Matti Lehmus said. “We continue to execute our renewables growth strategy by expanding our renewable raw materials sourcing platform to the US West Coast, which is also a location for our upcoming renewable diesel production joint operation in Martinez, California, and a key market for serving our customers.

“Together with Mahoney Environmental, this business will form a nationwide UCO collection and aggregation network. I look forward to welcoming the professional team and high-quality operations to contribute to Neste’s activities in North America.”

The 50-50 joint venture on the production of renewable diesel between Neste and Marathon Petroleum, Martinez Renewables in Martinez, Calif., is expected to commence production in early 2023 with pretreatment capabilities scheduled to come online in the second half of 2023.

Upon completion, Martinez Renewables is expected to increase Neste’s renewable products capacity by just over 1 million tons/year. Neste boasts an annual renewable products global production capacity of 3.3 million tons.

Neste anticipates a total production capacity of renewable products of 5.5 million tons by the end of 2023 via its ongoing Singapore refinery expansion project and the joint venture with Martinez Renewables.

According to Neste, its Rotterdam refinery expansion project in the Netherlands will increase total production capacity of renewable products to 6.8 million tons by the close of 2026.

–Reporting by MK Bower, mbower@opisnet.com; Editing by Jordan Godwin, jgodwin@opisnet.com

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