Finnish oil refiner Neste is considering investing in U.S. production of biofuels in a move seen as a response to possible policy changes by U.S. President Donald Trump’s administration.
Neste, which derived 48 percent of its profits from biofuels in 2016, has benefited from the “Blender’s Tax Credit”, a U.S. tax break, but the future of that policy is uncertain under the new U.S. administration.
The credit added 169 million euros to Neste’s operating profit in 2015. The company did not disclose a number for 2016, but analysts estimated it around 100 million euros.
Currently Neste exports renewable diesel to the U.S. market from its plants in Singapore and Rotterdam. Renewable diesel, or hydrotreated vegetable oil, is produced from waste fats, residues and vegetable oils and used in vehicles and machinery.
“We are currently evaluating the feasibility of options to invest in new production capacity. The options under review include locations in the U.S. and Singapore,” Chief Executive Matti Lievonen told a news conference.