On May 10, 2021, Technip Energies was awarded a huge and substantial contract worth between 250 and 500 million euros. The contract includes engineering, procurement, development and commissioning (EPCC) for Indian Oil Corporation Limited (IOCL) of para xylene. Most recently, the same company has been awarded two new contracts in the Netherlands.
Technip Energies has been awarded two important and decisive contracts by Nestlé for the development of a specific production center. This is indeed the manufacturing site for renewable fuels in the Netherlands, and more precisely in Rotterdam. These two contracts are part of the ongoing collaboration agreement between the two companies (Nestlé and Technip Energies). The two contracts together require 50 to 250 million euros.
Considering the clauses of the first contract, it concerns the services of equipment supply, engineering and construction management (EOsCm). These services are intended for the modification of Nestlé's Rotterdam refinery (for the production of renewable energy). This first contract will support the production of Sustainable Aviation Fuel (SAF).
The modifications planned to take place at the refinery require an investment of 190 million euros.
Note: These modifications will help Nestlé achieve a SAF production capacity of up to 500,000 tonnes per year. A production level in line with the existing capacity.
The second contract covers the front-end engineering design (FEED) work. Its purpose is to study the possibility of a new refinery for renewable products on a global scale on behalf of Nestlé, but still in Rotterdam.
This contract exists as part of Nestlé's preliminary work to assist its Board of Directors. The Board of Directors will therefore be able to make a final investment decision by the end of 2021 or early 2022.
Under the terms of the contracts, the production process is handled by Nestlé's owner, i.e. NEXBTL. This process is essentially based on the advanced technology of the company's parent company. Its role is to ensure the conversion of residues and waste into renewable products. The components resulting from this conversion are generally sustainable aviation fuel, Diesel & Renewable Solutions. They are destined for the chemical and polymer industries.
In conclusion, these two contracts reinforce the long-standing relationship between the two groups (Technip Energies and Nestlé). This collaboration started with the delivery of 2 units for the manufacture of renewable fuels in Singapore and Rotterdam. This delivery was followed by the Singapore expansion project in 2018.
Then, the group proceeded to sign a contract for the production of renewable fuels with the Nestlé company in 2019. The latter was thus being approached with its cutting-edge technology. It is therefore a real pride for the two companies to continue to collaborate and confirm their respective commitment to the energy transition. This partnership is also favoured by the current market trend.