- It is envisaged that by the end of this year the first phase of the ambitious energy project can be concluded
One half year after announcing an agreement to establish a 50-50 company to produce renewable diesel through a Marathon refinery retrofit project in Martinez, California (the Martinez Renewable Fuels project), Neste Corporation and Marathon Petroleum Corporation met all required closing conditions, including receipt of necessary permits and regulatory approvals.
Neste has today finalized transaction to establish a joint venture for production of renewable fuels with Marathon Petroleum in the United States. With this, we are taking one important step further in the execution of Neste’s renewables growth strategy. https://t.co/2NO7tkB6Iz
— Neste (@NesteGlobal) September 21, 2022
And in this way it is envisaged that in the second half of 2023 they will begin to produce renewable fuel.
In this regard, Matti Lehmus, president and executive director of Neste, endorsed his commitment to promote the use of alternative energies for the benefit of the environment, but also respond to the demands of consumers.
“With Martinez Renewables, we are taking an important step in executing Neste’s renewable energy growth strategy. The partnership strengthens our presence in the United States, with a renewable diesel production facility in the growing California market. This positions Neste as a global producer of renewable diesel, sustainable aviation fuel, and renewable feedstocks for polymers and chemicals, with production operations in Asia, Europe, and North America,” he noted.
For his part, Michael J. Hennigan, president and CEO of Marathon Petroleum, referred to the importance of establishing alliances that promote renewable energies.
“We believe there will be opportunities to leverage the differentiated knowledge and capabilities of two industry leaders as we pursue our shared commitment to energy evolution and the goal of leading in sustainable energy,” he said.
It should be noted that the renewable diesel production plant will be operated by Marathon, and the production will be divided equally among the joint venture partners.
As such, Martinez Renewables is expected to increase Neste’s renewable product capacity by just over one million tons (365 million US gallons) per year.
It is noteworthy that for this project Neste will invest one billion dollars, including half of the total cost of its anticipated development of about $1.2 billion, until the completion of the project.