Neste revises downwards its 2024 guidance for Renewable Products

Neste, a leader in renewable fuels, has changed its outlook for 2024 regarding its Renewable Products. The company has adjusted its expectations because of challenges in the market, particularly due to the drop in diesel prices during the third quarter of 2023. While diesel prices have fallen, the costs for waste and residue materials used to make renewable products have stayed high. In addition, the market price premiums for renewable products have stayed weak.

Neste has also updated its sales forecasts for both total Renewable Products and Sustainable Aviation Fuel (SAF). To adapt to the market, the company plans to adjust how it uses its production capacity for Renewable Products.

Revised Guidance for 2024 For 2024, Neste expects to sell around 3.9 million tons (Mt) of Renewable Products, plus or minus 5%. Out of this, the sales volume for SAF is predicted to be between 0.35 and 0.55 million tons. The company’s average sales margin for Renewable Products is expected to be between $360 and $480 per ton for the entire year.

This is a decrease from their previous forecast. Initially, Neste projected that it would sell 4.4 Mt of Renewable Products in 2024, with 0.5 to 0.7 million tons of SAF. The earlier forecast for the average sales margin was between $480 and $580 per ton.

Despite these changes in the Renewable Products division, Neste’s guidance for its Oil Products business remains unchanged.

Neste’s Vision and Achievements Neste is known for its work in turning waste and other materials into renewable fuels. The company uses advanced technology to create solutions that help fight climate change and promote a circular economy. As the world’s top producer of renewable diesel and SAF, Neste aims to help reduce greenhouse gas emissions by at least 20 million tons per year by 2030.

Carbon Capture, New Fuels and Energy Efficiency Are the Path to Net Zero Says Latest ABS Research

Neste has big goals for the future. It plans to make its oil refinery in Porvoo, Finland, the most sustainable in Europe. The company has committed to reaching carbon-neutral production by 2035 and reducing the carbon emissions of its products by 50% by 2040. Neste is also dedicated to protecting biodiversity, supporting human rights, and ensuring a responsible supply chain.

The company has consistently been ranked among the world’s most sustainable businesses and was included in the CDP and DJSI lists. In 2023, Neste’s revenue reached EUR 22.9 billion, a clear reflection of its strong market presence.

Conclusion Neste’s revised 2024 guidance reflects current market realities. While sales forecasts for Renewable Products have been lowered, the company continues to show its leadership in renewable energy, focusing on long-term goals of sustainability and climate action.