Rolls-Royce and Neste to cooperate on the implementation of sustainable fuels for mtu engines

• Both companies share a common vision, that sustainable fuels play a key role in reducing greenhouse gas emissions
• Rolls-Royce is gradually releasing mtu engines for use with renewable diesel (HVO) in various applications
• Neste will increase total production capacity of renewable products to 5.5 million tons by the end of 2023

Rolls-Royce and Neste have signed a Memorandum of Understanding to build a strategic partnership on the implementation of sustainable fuels for diesel engines. Both companies share a common vision: that sustainable fuels will play a key role in reducing greenhouse gas emissions in off-highway applications. The main components of the agreement are: promoting the use of existing internal combustion engines for sustainable fuels; advancing the transition from fossil fuels to sustainable fuels; and knowledge sharing on high-quality renewable diesel (HVO).

Tobias Ostermaier, President – Stationary Power Solutions, within the Rolls-Royce business unit Power Systems, which makes engines under the mtu brand, said: “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 greenhouse gas emissions by 35 percent compared to 2019. This near-term target plays an important role in helping the whole of Rolls-Royce realise its net zero ambitions. Our agreement with Neste, the world’s leading producer of renewable diesel, will help us achieve our goals and those of our customers.”

‘Neste MY Renewable Diesel’ produced from 100% renewable raw materials

‘Neste MY Renewable Diesel’ is produced from 100% renewable raw materials. Lars Peter Lindfors, Senior Vice President Innovations at Neste, said: “With ‘Neste MY Renewable Diesel’ greenhouse gas emissions can be reduced by as much as 75% to 95%* when emissions over the fuel’s life cycle are compared with fossil diesel. Companies can reduce their climate emissions significantly in an instant by just changing the fuel.”

Rolls-Royce tests show HVO use significantly reduces CO2, nitrogen oxide and particulate emissions

Michael Stipa, Vice President Stationary Strategy, Business Development and Product Management for the Power Systems division of Rolls-Royce, said: “Since May 2022, Rolls-Royce has approved mtu diesel engines for Power Generation for renewable diesel (also known as HVO) and other EN15940 fuels. The tests we have done show an up to 90% greenhouse gas reduction, up to 80% less particulate emissions and an average of 8% nitrogen oxides reduction. All our tests revealed full performance without modifications to the engines.” Power Systems is gradually releasing its main mtu engine series for sustainable fuels such as HVO and e-diesel for use in other applications such as rail, marine and the construction industry.

“Both Neste and Rolls-Royce are aimed to reach their climate targets and to support the customers’ journey towards sustainability. In order to achieve this, cooperation is really key,” said Mats Hultman, Head of OEM Partnerships at Neste.

Growing availability of renewable diesel and other renewable products

Neste currently has a renewable products global production capacity of 3.3 million tons annually. Neste’s ongoing Singapore expansion project and a joint venture with Marathon in Martinez, CA, that is still pending completion, will increase the total production capacity of renewable products to 5.5 million tons by the end of 2023. It will 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, the expansion of its Rotterdam refinery will further increase the company’s total production capacity of renewable products to 6.8 million tons by the end of 2026.

Rolls-Royce and Neste already testing sustainable aviation fuel on Airbus A350 in 2021

Rolls-Royce has experience of working with Neste on sustainable fuels in other parts of its business. In November 2021, Rolls-Royce and Neste, alongside Airbus and German research centre DLR, conducted a world-first study of the impact of 100% sustainable aviation fuel (SAF) on both engines of a commercial jet. The study marked the first time 100% SAF had been measured simultaneously on both engines of a commercial passenger aircraft – an Airbus A350 aircraft powered by Rolls-Royce Trent XWB engines from its Civil Aerospace division.

*The GHG emission reduction percentage varies depending on the region-specific legislation that provides the methodology for the calculations (e.g. EU RED II 2018/2001/EU for Europe and US California LCFS for the US), and the raw material mix used to manufacture the product for each market.

1. Rolls-Royce pioneers the power that matters to connect, power and protect society. We have pledged to achieve net zero greenhouse gas emissions in our operations by 2030 (excluding product testing) and joined the UN Race to Zero campaign in 2020, affirming our ambition to play a fundamental role in enabling the sectors in which we operate achieve net zero carbon by 2050.
2. Rolls-Royce Power Systems is headquartered in Friedrichshafen in southern Germany and employs around 9,000 people. The product portfolio includes mtu-brand high-speed engines and propulsion systems for ships, power generation, heavy land, rail and defence vehicles and for the oil and gas industry as well as diesel and gas systems and battery containers for mission critical, standby and continuous power, combined generation of heat and power, and microgrids and is intensively engaged in the development of climate-neutral solutions.
3. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces and navies, and more than 5,000 power and nuclear customers.
4. Annual underlying revenue was £10.95 billion in 2021, underlying operating profit was £414m and we invested £1.18 billion on research and development. We also support a global network of 28 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.
5. Rolls-Royce Holdings plc is a publicly traded company (LSE:RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69).

About Neste

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of sustainable aviation fuel and renewable diesel and developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce their greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. Our ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. We are introducing renewable and recycled raw materials such as liquefied waste plastic as refinery raw materials. We have committed to reaching carbon-neutral production by 2035, and we will reduce the carbon emission intensity of sold products by 50% by 2040. We also have set high standards for biodiversity, human rights and supply chain. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2021, Neste's revenue stood at EUR 15.1 billion. Read more: neste.com