Neste Oyj Expands Sustainable Aviation Fuel Production Capacity
Neste Oyj, a significant producer of Sustainable Aviation Fuel (SAF), is increasing its production capacity to meet the growing demand from the aviation industry. The company aims to reduce carbon emissions from air travel.
Neste Oyj, a major producer of Sustainable Aviation Fuel (SAF), plans to increase its annual SAF production capacity from 1.5 million tons to 2.2 million tons by 2027. This expansion aims to support the aviation industry's efforts to reduce its reliance on fossil fuels and cut carbon emissions.
The planned capacity increase, expected by February 26, 2026, involves an expansion of the company's refinery in Rotterdam. Neste has already expanded its Singapore refinery, which is the world's largest SAF production facility. The company has been producing SAF since 2011.
According to projections from the International Air Transport Association (IATA), global SAF production is expected to reach two million tons in 2025. However, this represents only 0.7% of the total fuel used by airlines. Achieving the industry's net-zero carbon emission target by 2050 will require a substantially faster expansion of production.
New regulations, such as the ReFuelEU and UK SAF mandates implemented at the start of 2025, coupled with an increasing number of industry investments and collaborations, are driving demand and encouraging production growth. For instance, Singapore Airlines and Scoot are already using SAF produced by Neste at Singapore's Changi Airport.
Neste acknowledges that reducing aviation's greenhouse gas emissions also necessitates new aircraft concepts and engine technologies. However, the company's current strategy prioritizes advancing SAF production to achieve near- and mid-term emission reductions.