Neste Oil inaugurates Europe´s first pilot plant for producing microbial oil from waste and residues

Neste Oil Corporation
Press release
26 October 2012 at noon (EET)

Neste Oil inaugurates Europe´s first pilot plant for producing microbial oil
from waste and residues

Neste Oil is celebrating the official opening of Europe´s first pilot plant for
producing microbial oil from waste and residues today, 26 October, at its site
in Porvoo, Finland. Finland´s Minister of Economic Affairs, Jyri Häkämies,
carried out the opening ceremony. Microbial oil produced from industrial and
agricultural residues, such as straw represents one of the most promising future
raw materials for NExBTL renewable diesel.

"Increasing the use of waste and residues in the production of NExBTL renewable
diesel is one of our most important goals, " says Lars Peter Lindfors, Neste
Oil´s Senior Vice President, Technology. "The start-up of the new microbial oil
pilot plant represents a significant step towards achieving this goal, as the
plant will test how various agricultural and forest industry residues can be
converted into oil with the help of microbes. Agriculture in Finland and
elsewhere, for example, produces large quantities of straw, but little of this
straw is put to effective use. Thanks to the technology that we have developed,
it will be possible to process straw into a feedstock for premium-quality
renewable diesel in the future. Our microbial technology is also capable of
handling many other raw materials as well."

"The range of potential raw materials for producing biofuels is very extensive
today, " says Jyri Häkämies, Finland´s Minister of Economic Affairs. "The work
that Neste Oil and many other Finnish companies have done to develop new raw
material alternatives and new production technologies indicates very clearly
that Finland is well-placed to remain at the forefront of developments in this
area and achieve some very important renewable energy-related goals."

The outcome of years of R&D

Neste Oil launched a microbial oil research program with with Aalto University
School of Chemical Technology in 2007 and has applied for a number of patents
for its technology in the field. Neste Oil announced in December 2011 that it
was going to invest EUR 8 million in building a microbial oil pilot plant
alongside its Technology Center at Porvoo. The first phase of the plant was
completed in August this year and has already successfully produced microbial-
rich biomass. The pilot plant currently employs around 10 people directly and
more indirectly.

The aim of Neste Oil´s R&D in the field is to develop a technology capable of
producing microbial oil on an industrial scale. Microbial oil is expected to
enter commercial production in 2015 at the earliest.

Neste Oil Corporation

Osmo Kammonen
Senior Vice President, Communications, Marketing and Public Affairs

Further information:
Petri Lehmus, Vice President, Research and Technology, tel. [phone]

Photographs and graphics for media use can be found here:
http://brandbank.nesteoil.com/?cart=360-maikidccah&l=EN

Watch a video about Neste Oil´s R&D and microbial oil pilot plant:
http://www.youtube.com/watch?v=9iVpz-maiq0&feature=youtu.be

Neste Oil in brief

Neste Oil Corporation is a refining and marketing company concentrating on low-
emission, high-quality traffic fuels, and is the world´s leading supplier of
renewable diesel. Neste Oil had net sales of EUR 15.4 billion in 2011 and
employs around 5,000 people. Neste Oil´s share is listed on NASDAQ OMX Helsinki.

Neste Oil has been selected for inclusion in the Dow Jones Sustainability World
Index and the Ethibel Excellence Investment Register. Neste Oil has been
included in The Global 100 list of the world´s most sustainable corporations for
a number of years in succession; and Forest Footprint Disclosure (FFD) has
ranked Neste Oil as the best performer in the oil & gas sector. Further
information: www.nesteoil.com

NExBTL renewable diesel in brief

Neste Oil´s NExBTL renewable diesel is compatible with all diesel engines,
either at 100% content or blended with fossil diesel. It has a similar
composition to fossil diesel and offers equally good or even better quality.
NExBTL diesel has been tested extensively and successfully around the world in
trucks, buses, and cars. Using NExBTL diesel reduces greenhouse gas emissions by
at least 40% compared to fossil diesel, and reduces tailpipe emissions
significantly as well. NExBTL technology is capable of processing virtually any
vegetable oil or waste fat into premium-quality renewable fuels.

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Source: Neste Oil Oyj via Thomson Reuters ONE
[HUG#1652703]

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