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Strategy implementation

The implementation of Neste Oil’s strategy continues to be driven by a series of Value Creation programs: Profitable Growth, Productivity, Renewable Feedstock, and Customer Focus. These programs have defined targets and their progress is measured continuously.

Key achievements in the Profitable Growth program in 2013 include further developing the business operations of Renewable Fuels and the opening-up of new markets such as Australia, Austria, Italy, and Switzerland for the fuel. Customer segments and future potential were identified in new application areas such as chemicals and solvents. Base oil sales increased and new customers were secured in Asia and North America. The product range of the base oil joint venture in Bahrain was expanded in February.

Productivity was systematically enhanced and the renewable diesel refineries in Singapore and Rotterdam achieved normal operational status, with output exceeding the refineries’ nameplate capacity. Tall oil pitch was tested successfully at the Naantali refinery to gain bio-mandate status for products. The implementation of energy efficiency plans proceeded well and the energy efficiency index of the company’s oil refineries hit a record high.

The main achievement in the Renewable Feedstock program was the expansion of Neste Oil’s renewable feedstock portfolio; technical corn oil (TCO), spent bleaching earth oil (SBEO), and tall oil pitch (TOP) were added. All the renewable feedstocks used by Neste Oil are 100% traced back to their origin and palm oil is 100%-certified. Neste Oil has been the first company to receive a RSPO-RED certificate, developed by the Roundtable on Sustainable Palm Oil (RSPO) for biofuels meeting the Renewable Energy Directive (RED) requirements, for the NExBTL renewable diesel produced at its refineries in Singapore and Rotterdam. Extensive R&D work is continuing to develop new, long-term renewable inputs for NExBTL production. The focus during 2013 was on gaining customer and market acceptance for different types of feedstock to enable Neste Oil to leverage its extensive feedstock portfolio globally. This will also be one of the main focus areas in 2014.

Progress in the Customer Focus program during 2013 included further development of customer segmentation and other sales processes and tools, leading to the creation of new solutions with customers in areas such as logistics, premium and specialty products, and high-quality solutions. Neste Pro Diesel, a premium-quality diesel fuel developed and produced by Neste Oil in Finland, was the first anywhere to comply with the WWFC 5 specification drawn up as part of the Worldwide Fuel Charter (WWFC) by automotive manufacturers in Europe, the US, and Asia.