Neste acquires Mahoney Environmental to strengthen US raw material sourcing
Neste Corporation will acquire Mahoney Environmental, a U.S.-based collector and recycler of used cooking oil, to bolster its renewable raw material supply chain in North America.
Neste Oyj, a producer of renewable diesel and sustainable aviation fuel, has entered into an agreement to acquire 100% of Mahoney Environmental and its affiliated entities. Mahoney Environmental collects and recycles used cooking oil from restaurants and other food service establishments across the United States.
The acquisition is intended to strengthen Neste's growth strategy and expand its supply of used cooking oil as a raw material in North America. This oil will be used by Neste to produce renewable diesel, sustainable aviation fuel, and materials for renewable polymers.
"This is an important step in executing our growth strategy. With this acquisition, we will gain access to a substantial volume of used cooking oil and a platform to grow our raw material supply chain in North America," said Neste President and CEO Peter Vanacker.
The transaction supports Neste's efforts to build a global platform for waste and residue raw materials to meet the growing demand for renewable products. Mahoney Environmental's pre-treatment of collected used cooking oil makes it a viable feedstock, one of more than ten types that Neste can utilize in its production.