Vopak repurposed existing infrastructure to support energy transition in California
Rotterdam, the Netherlands, 27 September 2023 09:00 AM US ET / 15:00 CEST
Today Vopak celebrates the repurposing of 22 tanks at Vopak's Los Angeles terminal in California, USA. With a combined capacity of 148,000 cubic meters (39 million gallons), this is a clear example of how storage capacity used for traditional products can be repurposed to store the products of the future like Sustainable Aviation Fuel (SAF) and renewable diesel.
Vopak Los Angeles has a long-term agreement for this storage infrastructure with Neste, the world’s leading producer of SAF, renewable diesel, and renewable feedstock solutions for various polymers and chemicals industry uses.
The Vopak Los Angeles Terminal is strategically located in the Port of Los Angeles and is well-connected for logistics via various modes of transportation, including vessels, barges, trucks, pipeline, and trains. The storage capacity at the Vopak terminal significantly increases the availability and accessibility of Neste's renewable fuels at critical hubs in the Los Angeles area, such as SAF for airlines at the Los Angeles International Airport (LAX) and surrounding airports, and renewable diesel for fueling stations serving road transportation.
“Neste is fully committed to supporting the energy transition in the U.S. as well as globally via working closely together with partners to increase the availability of our renewable fuels. Our cooperation with Vopak shows how repurposing existing fuel distribution infrastructure can accelerate the much needed transition to renewable energy,” says Annika Tibbe, acting President for Neste US. “California has been at the forefront of adopting and endorsing climate-friendly policies and solutions. We are glad to enable more cities, businesses and individual travelers in the state to take advantage of Neste’s renewable solutions to reduce their emissions and help fight against climate change.”
“The Port of Los Angeles congratulates Vopak for its work here at the Port converting nearly two dozen of its tanks to sustainable aviation fuel and renewable low-carbon fuel sources,” said Port of Los Angeles Executive Director Gene Seroka. “The Port of Los Angeles supports the use of lower carbon intense fuel options in the local transportation industry as we progress towards our own zero emission goals beginning in 2030. We appreciate Vopak’s efforts and partnership in this transition.”
Maria Ciliberti, Vopak President United States and Canada: "We are proud to serve Neste! Repurposing Vopak’s assets from oil and traditional fossil fuel products to low carbon energy solutions is right on target with our strategy. We are happy that our services and infrastructure have been selected and are committed to be a part of the Los Angeles energy transition”.
Neste products supporting the energy transition
Neste's renewable fuels offer a more sustainable alternative to fossil fuels. Neste MY Renewable Diesel™ reduces greenhouse gas (GHG) emissions up to 75%* compared to fossil diesel over its life cycle. Neste MY Sustainable Aviation Fuel™ reduces GHG emissions by up to 80%** over the fuel’s life cycle compared to using fossil jet fuel. Both fuels are fully compatible with current diesel and aircraft engines and fueling infrastructure, making them ideal solutions to reduce emissions in hard to abate sectors like aviation, heavy duty transport, and freight.
Vopak is investing in infrastructure for the energy transition
Vopak has invested approximately EUR 30 million into repurposing existing conventional oil storage capacity over the last months into biofuels storage. As previously announced, Vopak will accelerate its portfolio investments towards new energies and sustainable feedstocks by allocating EUR 1 billion in growth capital to these activities by 2030. This is half of Vopak's growth capital allocation till 2030. Vopak's focus is on infrastructure solutions for low-carbon and renewable hydrogen, ammonia, CO2, long duration energy storage and sustainable feedstocks. This strategy will help shape the future of Vopak, but also contribute positively to the transition within key industrial clusters and the shaping of energy hubs of the future.
*Life cycle greenhouse gas emission reductions compared to fossil diesel and based on current feedstock pathways. Calculation method complies with the LCFS CA-GREET 3.0.
** When used in neat form (i.e. unblended) and calculated with established life cycle assessment (LCA) methodologies, such as CORSIA methodology
About Royal Vopak
Royal Vopak is the world’s leading independent tank storage company. We store vital products with care. Products for everyday life. The energy that allows people to cook, heat or cool their homes and for transportation. The chemicals that enable companies to manufacture millions of useful products. The edible oils to prepare food. We take pride in improving access to cleaner energy and feedstocks for a growing world population, ensuring safe, clean and efficient storage and handling of bulk liquid products and gases at strategic locations around the world. We are excited to help shape a sustainable future by developing infrastructure solutions for new vital products, focusing on zero- and low-carbon hydrogen, ammonia, CO2, long duration energy storage and sustainable feedstocks. We have a track record of over 400 years in navigating change and are continuously investing in innovation. On sustainability, we are ambitious and performance driven, with a balanced roadmap that reflects key topics that matter most to our stakeholders and where we can have a positive impact for people, planet and profit and the United Nations Sustainable Development Goals. Vopak is listed on the Euronext Amsterdam and is headquartered in Rotterdam, the Netherlands. For more information, please visit www.vopak.com
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of sustainable aviation fuel and renewable diesel and developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce their greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. Our ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. We are introducing renewable and recycled raw materials such as liquefied waste plastic as refinery raw materials. We have committed to reaching carbon-neutral production by 2035, and we will reduce the carbon emission intensity of sold products by 50% by 2040. We also have set high standards for biodiversity, human rights and supply chain. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2021, Neste's revenue stood at EUR 15.1 billion. Read more: neste.com
For more information, please contact:
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Analysts and Investors: Fatjona Topciu - Head of Investor Relations
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