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  • Neste Corp.

Neste, Rolls-Royce build strategic partnership to accelerate shift from fossil to renewable fuels


Signing the agreement at the Neste headquarters. From left, Mats Hultman, Lars Peter Lindfors, Tobias Ostermaier, Michael Stipa (Photo: Neste Corp.)

Neste and Rolls-Royce have agreed to build a strategic partnership on accelerating the use of renewable diesel as a lower-emission solution for diesel engines.


Both parties share a common vision of renewable fuels playing a key role in reducing greenhouse-gas (GHG) emissions in off-highway applications, such as construction and power generation.

The key focus in the collaboration will be on promoting the use of more sustainable fuels in applications based on the existing internal combustion engine technology, accelerating the transition from fossil fuels to renewable fuels, and increasing knowledge sharing on renewable diesel and the benefits it provides to users.

Under the mtu brand, Rolls-Royce sells high-speed engines and propulsion systems for ships, power generation, heavy land and rail vehicles, military vehicles, and the oil and gas industry, as well as diesel and gas systems and battery containers for safety-critical applications, continuous power generation, combined heat and power, and microgrids.

“Through our ‘Net Zero at Power Systems’ sustainability program, we have committed to realigning our mtu product portfolio so that by 2030, sustainable fuels and new mtu technologies will reduce our greenhouse-gas emissions by 35 percent compared to 2019,” said Tobias Ostermaier, president of stationary-power solutions from Rolls-Royce's power-systems business unit. This near-term target plays an important role in the Rolls-Royce Group’s net-zero ambition by 2050 at the latest. Our collaboration with Neste, the world’s leading producer of renewable diesel, will help us achieve our goals and those of our customers.”


Lars Peter Lindfors, senior vice president of innovations at Neste, added, “With Neste MY Renewable Diesel the GHG emissions can be reduced by as much as 75 to 95 percent when emissions over the fuel’s lifecycle are compared with fossil diesel. Companies can reduce their climate emissions significantly in an instant by just changing the fuel.”

Neste MY Renewable Diesel™ is produced from 100 percent renewable raw materials. It is a drop-in fuel, not requiring any modifications to the existing vehicles, energy systems or fuel-distribution infrastructures.

“Since May, Rolls-Royce has approved mtu engines for power generation for renewable diesel and other fuels meeting the EN15940 standard specifications,” said Michael Stipa, an executive at Rolls-Royce’s power-systems business unit. “The tests we have done show additionally an up to 90 percent greenhouse-gas reduction, up to 80 percent less particulate emissions and an average of 8 percent nitrogen oxides reduction. All our tests confirmed full performance levels without modifications to the engines.”


Rolls-Royce is gradually releasing its main mtu engine series for more sustainable fuels such as renewable diesel, also known as hydrotreated vegetable oil (HVO or HVO100), and e-diesel also in other applications such as rail, marine and the construction industry.

“Both Neste and Rolls-Royce are aiming to reach their climate targets and to support the customers on their sustainability journey,” said Mats Hultman, head of OEM partnerships at Neste. “Collaboration truly plays a key role when aiming for a significant sustainability impact.”

Neste’s current production capacity for renewable products globally is at 3.3 million tons annually.


Neste’s ongoing production capacity project at its Singapore refinery and the joint venture with Marathon Petroleum in Martinez, California, will increase the total production capacity of renewable products to 5.5 million tons by the end of 2023, and make Neste the only global provider of renewable fuels and renewable feedstock for polymers and chemicals with a production footprint on three continents.


When completed, Neste’s Rotterdam refinery expansion project will further increase the company’s total production capacity of renewable products to 6.8 million tons by the end of 2026.

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