Neste Aims to Become World’s Largest Biodiesel Producer

September 27, 2006 8:30 AM, EDT

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inish oil refiner Neste Oil Oyj plans to invest several billion euros to become the world’s largest biodiesel producer, Bloomberg reported Wednesday.

The company plans to build several biodiesel production facilities over the next decade and expects to begin commercial production of the fuel in 2007, Bloomberg said.

Neste is also considering building biodiesel plants in Europe, North America and Asia and is in talks with potential partners, Bloomberg reported.

The move is in response to new European Union regulations that require biofuels to make up 5.75% of all fuel consumed by 2010, Bloomberg said.

Commenting on Neste’s strategy, Petri Pentti, the company’s chief financial officer, told Bloomberg that the oil producer is responding not only to the new EU regulations, but to a demand for diesel in both the European market and the North American trucking business.