Neste Oil to buy algae oils from Cellana to use as biofuels feedstock
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 deal is contingent on Cellana's future production capacity and on compliance with future biofuel legislation in the EU and US, among other factors.
Neste Oil, the world's largest producer of renewable diesel,
has signed a contingent commercial off-take agreement with
Cellana, a US-based algae biomass developer, the companies
announced on Friday.
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 deal is contingent on Cellana's future production
capacity and on compliance with future biofuel legislation in the EU and
US, among other factors.
Cellana said it 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, according
to company officials.
"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," said Lars Peter Lindfors, senior vice
president of technology for
"Studies have already shown that algae oil can be used
successfully in our NExBTL process," he added. "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."
The agreement between the companies is non-exclusive and allows
each to enter into additional agreements with other parties.
Neste Oil noted that it is also involved in university-led
algae research projects in Australia and the
Netherlands that are testing a range of methods for cultivating
Neste Oil says it is currently the world's only biofuel producer capable of refining premium-quality renewable
fuel from over 10 different feedstocks on an industrial
The company is also researching the use of agricultural and
forestry residues to produce microbial oil for feedstock purposes at a new pilot
plant at Neste Oil's technology center in Porvoo,