Cellana, Neste Oil enter off-take agreement for algae oil
Cellana, a developer of algae-based feedstocks for biofuels, animal feed, and omega-3 nutritional oils, announced that it has entered into a multi-year off-take agreement with Neste Oil, the world’s leading supplier of renewable diesel, for commercial-scale quantities of Cellana’s ReNew Fuel algae oil feedstocks for biofuel applications.
Under the agreement, Neste Oil has committed to purchase crude algal oil produced by commercial-scale algae biorefineries that Cellana is developing worldwide. The agreement is contingent on Cellana’s future production capacity and on compliance with future biofuel legislation in the E.U. and U.S., among other factors. The agreement between Cellana and Neste Oil is non-exclusive and allows each company to enter into additional agreements with other parties.
“Cellana is honored by Neste Oil’s commitment to this commercial off-take agreement, as they are the world’s largest supplier and distributor of renewable diesel,” said Martin A. Sabarsky, Cellana CEO. “We look forward to working closely with Neste Oil to ensuring the success of this new customer relationship.”
“We want to support R&D efforts on new, sustainably produced raw materials and increased production of algae oil, which is one of the most interesting future alternatives in this area. Studies have already shown that algae oil can be used successfully in our NExBTL process,” said Neste Oil Senior Vice President of Technology Lars Peter Lindfors. “The off-take agreement with Cellana allows us access to commercial-scale volumes of cost-competitive algae oil in the future. This new agreement fits very well with our strategy aimed at extending the range of feedstocks we use for NExBTL renewable fuel.” Samples have shown that Cellana is able to produce algae oil suitable for renewable fuel production by Neste Oil.
“This agreement supports Cellana’s three-product biorefinery business model and will allow Cellana to accelerate its remaining off-take agreements for animal feed and Omega-3 nutritional oils,” said Michael J. Kamdar, Cellana president. “The off-take with Neste Oil, together with the remaining agreements for animal feed and Omega-3 nutritional oils that Cellana plans to sign, will contribute to Cellana’s development of commercial algae facilities throughout the world with a total capacity of at least 100,000 metric tons of algae biomass per year.”
“This agreement is a significant milestone for Cellana and for the broader algae biomass industry. It illustrates the success of U.S. federal government agencies in funding advanced research and development at companies like Cellana that are nearing commercialization. Cellana is grateful to the US Department of Energy, the US Department of Agriculture, and the US Department of Defense, for their historic and continued support and trust in Cellana’s approach to addressing a global need,” Sabarsky continued.
Cellana was exclusively advised by Vista Partners in concluding this transaction.