Earlier this year, Finland-based company, Neste Corporation and Marathon Petroleum Corporation agreed upon the 50/50 joint venture, Martinez Renewables, to produce renewable diesel, according to a press release.
"With Martinez Renewables, we are taking one important step further in the execution of Neste's renewables growth strategy,” Neste's President and CEO Matti Lehmus said. “The partnership strengthens our footprint in the United States, with a renewable diesel production facility in the growing California market.”
The new venture will be operated by Marathon, and the production output will be equally distributed between the joint venture partners. All the closing and regulatory requirements were fulfilled by both parties. Under the terms of the agreement, Neste will collect a 50% interest.
The initiative is projected to begin its production during the first quarters of 2023. Pretreatment capabilities will follow during the second half of the year. Overall, the facility’s capacity is expected to reach 730 million U.S. gallons per year by the end of 2023. Once finalized, Martinez Renewables is estimated to increase product capacity by more than 1 million tons per annum.
The launch follows a similar conversion project of Marathon's refinery in Martinez, California.
“This positions Neste as a global producer of renewable diesel, sustainable aviation fuel and renewable feedstock for polymers and chemicals, with production operations in Asia, Europe and North America,” Lehmus said.