Neste Oyj — M&A Activity 2022

Mar 1, 2022

Neste to establish a joint venture for production of renewable fuels in the United States with Marathon Petroleum

Neste to establish a joint venture for production of renewable fuels in the United States with Marathon Petroleum

Neste Corporation, Stock Exchange Release / Insider Information, 1 March 2022,
at 11.05 p.m.  (EET)

Neste Corporation has signed definitive agreements for the establishment of a
50/50 joint venture with US-based Marathon Petroleum (Marathon). The joint
venture will produce renewable diesel following a conversion project of
Marathon's refinery in Martinez, California (the Martinez Renewable Fuels
project). 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 1.0
billion), inclusive of half of the total project development costs projected
through the completion of the project. The project is expected to increase
Neste’s renewable products capacity by slightly over 1 million tons (365 million
US gallons) per annum. 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.

“This is a very important step in our renewables growth strategy execution. The
location of the facility is in the middle of the growing renewable fuel market
in California. The partnership will further strengthen our footprint in the
United States, as we will have a broad value chain that covers feedstock
sourcing to renewables production and sales in the US. We are thrilled to
partner with Marathon: we both share an ambition in offering more high-quality,
lower-emission renewable products, thus helping customers to achieve their
sustainability goals,” says Peter Vanacker, Neste’s President and Chief
Executive Officer.

“We have committed to helping our customers decrease their greenhouse gas
emissions by at least 20 million tons of CO2eq annually by 2030. This joint
venture will help us in exceeding our commitment as it will bring a substantial
amount of renewable diesel to our customers in the US. Our ongoing Singapore
expansion project and this joint venture will increase our total production
capacity of renewable products to 5.5 million tons by the end of 2023 and we
will be the only global provider of renewable products with a production
footprint in North America, Asia and Europe. As announced in Neste's Financial
Statement Release 2021, the project for a possible next worldscale renewables
refinery in Rotterdam is in the engineering phase and we are approaching
readiness for a final investment decision during the next months,” continues
Vanacker.

Through this joint venture Neste obtains a 50% interest in the Martinez
Renewable Fuels project. The production output will be split evenly between the
joint venture partners, and each partner will be responsible to market the
products under its own brand and responsibility. The facility will be operated
by Marathon, which has long experience as a leading refinery operator and in
executing major capex projects in the US. Both Neste and Marathon will be
responsible for feedstock sourcing for the joint venture.

Neste’s regional headquarters in North America is in Houston, Texas, and the
company employs more than 500 people across the US. Neste’s renewable waste and
residue sourcing platform in the US includes fully owned Mahoney Environmental,
a leading collector and recycler of used cooking oil and Agri Trading, one of
the largest independent renewable waste and residue fat and oil traders in the
US.

Neste Corporation

Susanna Sieppi
Vice President, Communications

Invitation for media and investors and analysts:

Neste will arrange two virtual briefings in English for media and investors and
analysts on this topic on 2 March 2022.

A virtual media briefing and Q&A will be held on 2 March at 9:00 a.m. EET
Finland time. The briefing will be hosted by Peter Vanacker, Neste’s President
and CEO, Matti Lehmus, EVP, Renewables Platform and Minna Aila, SVP,
Sustainability and Corporate Affairs. Media representatives are invited to
participate in the briefing by sending their information (participant’s name,
email address and the name of the media) in advance to Neste’s media service at
media@neste.com, who will in response provide the meeting link for joining the
briefing. The duration of the event will be a maximum 45 minutes.

A virtual briefing call for investors and analysts will be held on 2 March at
11:00 a.m. EET Finland / 9:00 a.m. UK time, hosted by Peter Vanacker, Neste’s
President and CEO, Matti Lehmus, EVP, Renewables Platform and Juha-Pekka
Kekäläinen, VP Investor Relations. Investors and analysts are invited to
participate in the briefing by sending their information (participant’s name,
email address and the name of the company) in advance to investors@neste.com,
who will in response provide the meeting link for joining the briefing. The
duration of the event will be a maximum 45 minutes.

Further information for the media:

Please contact Neste’s media service, tel. +358 50 458 5076, media@neste.com (2
March from 7:30 a.m. to 4 p.m. EET)

North American Media: Neste’s North America Communications Manager, Theodore
Rolfvondenbaumen, tel. +1 832 799 7029, theodore.rolfvondenbaumen@neste.com

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change
and accelerating a shift to a circular economy. We refine waste, residues and
innovative raw materials into renewable fuels and sustainable feedstock for
plastics and other materials. We are the world’s leading producer of sustainable
aviation fuel and renewable diesel and developing chemical recycling to combat
the plastic waste challenge. We aim at helping customers to reduce their
greenhouse gas emissions with our renewable and circular solutions by at least
20 million tons annually by 2030. Our ambition is to make the Porvoo oil
refinery in Finland the most sustainable refinery in Europe by 2030. We are
introducing renewable and recycled raw materials such as liquefied waste plastic
as refinery raw materials. We have committed to reaching carbon-neutral
production by 2035, and we will reduce the carbon emission intensity of sold
products by 50% by 2040. We also have set high standards for biodiversity, human
rights and supply chain. We have consistently been included in the Dow Jones
Sustainability Indices and the Global 100 list of the world’s most sustainable
companies. In 2021, Neste's revenue stood at EUR 15.1 billion. Read more:
neste.com (https://www.neste.com/)