Neste to Form JV with Marathon Petroleum for Renewable Diesel Production in US

Neste Corporation has signed definitive agreements for the establishment of a 50/50 joint venture with US-based Marathon Petroleum.

The joint venture will produce renewable diesel following a conversion project of Marathon's refinery in Martinez, California.

The closing of the joint venture is subject to customary closing conditions and regulatory approvals, including obtaining the necessary permits, which depend upon certification of a final Environmental Impact Report.

Neste's total investment will amount to approximately EUR 0.9 billion, inclusive of half of the total project development costs projected through the completion of the project.

The project is expected to increase Neste's renewable products capacity by slightly over 1 million tons per annum. Production of renewable diesel is expected to come online in the second half of 2022.

The facility is planned to reach its full annual nameplate capacity of 2.1 million tons by the end of 2023.

"This is a very important step in our renewables growth strategy execution. The location of the facility is in the middle of the growing renewable fuel market in California. The partnership will further strengthen our footprint in the United States, as we will have a broad value chain that covers feedstock sourcing to renewables production and sales in the US. We are thrilled to partner with Marathon: we both share an ambition in offering more high-quality, lower-emission renewable products, thus helping customers to achieve their sustainability goals," says Peter Vanacker, Neste's President and Chief Executive Officer.