Neste, SHV Energy to provide renewable propane to Europe

Neste started the world’s first large-scale renewable propane production facility in Rotterdam, Netherlands.

The first cargo of renewable propane was delivered to SHV Energy, which will market and sell the product to its customers across Europe as BioLPG. Neste’s new facility has a production capacity of 40,000 tons per year, the company reports. SHV Energy will be the exclusive distributor, supplying 160,000 tons over four years.

SHV Energy, an LP gas distributor that operates in 20 countries, acquired Pinnacle Propane from American Midstream last year.

The company says BioLPG will enable users of existing fossil fuels to reduce their carbon footprint without any modifications to existing gas applications technology. Additionally, BioLPG can be used within a full range of existing LP gas applications, from transport and commercial heating to retail leisure cylinders.

“Start-up of the new production facility means that SHV Energy’s customers in Europe will be able to use this new renewable product and enjoy its environmental benefits combined with ease of use in already familiar applications,” says Kaisa Hietala, executive vice president of renewable products for Neste. “For us it also represents an important step in implementing our growth strategy for renewable products.”

Neste’s Rotterdam refinery primarily produces premium-quality Neste MY renewable diesel from various waste and residues, as well as vegetable oils. The new unit will purify and separate renewable propane from the side stream gases produced by the refinery, the company says.

“SHV Energy is proud to be part of this unique renewable energy project and congratulates Neste on a fantastic engineering achievement,” says Fulco van Lede, management board member of SHV Energy. “In use, BioLPG will be very low carbon and extremely clean. The biggest environmental contribution that it can make is when it replaces existing high-carbon solid and liquid fuels in homes and businesses located beyond the natural gas grid. The mission of all SHV Energy companies is advancing energy together, and this is exactly what BioLPG will mean for the thousands of customers over seven European countries who will start to enjoy the benefits of this new product very soon.”

Stuart Weidie, president and CEO of Blossman Gas, offers his views on the possibilities of renewable propane in the U.S. market.