Roschier advised Neste in the establishment of a joint venture for production of renewable fuels in the United States
Neste has announced the establishment of a joint venture with US-based Marathon Petroleum, for production of renewable fuels in the United States. Roschier advised Neste in the transaction.
The 50/50 joint venture will produce renewable diesel following a conversion project of Marathon’s refinery in Martinez, California. The closing of the joint venture is subject to customary closing conditions and regulatory approvals, including obtaining the necessary permits, which depend upon certification of a final Environmental Impact Report.
Neste’s total investment will amount to approximately EUR 0.9 billion (USD 1 billion), inclusive of half of the total project development costs projected through the completion of the project.
Production of renewable diesel is expected to come online in the second half of 2022. The facility is planned to reach its full annual nameplate capacity of 2.1 million tons (730 million US gallons) by the end of 2023.
Roschier’s advisory team was led by Partner Jouni Salmi.