London-based TechnipFMC will help develop renewable diesel though a partnership with Finland-based former refiner Neste covering the latter’s NEXBTL technology, which turns oil and waste into usable energy products.

Under the pact, TechnipFMC will provide front-end loading (FEL) services, including concept feasibility, pre-front end engineering and design and FEED studies, for future Neste NEXBTL projects.

The NEXBTL technology, owned by Neste, allows the conversion of second-generation feedstock like vegetable oil or waste fat into renewable diesel and other renewable products.

According to TechnipFMC, it is becoming “increasingly important as it provides an efficient and sustainable solution in the fuels sector, while addressing environmental concerns”.

The technology allows production of renewable diesel that helps its users reduce greenhouse gas emissions by up to 90% over the lifecycle of the fuel compared to conventional fossil diesel.

“The TechnipFMC-Neste partnership is a result of our long-term collaboration, illustrated by the successful delivery of two world-scale renewable fuels units in Rotterdam and Singapore and the ongoing expansion project of Neste’s renewable products facility in Singapore,” TechnipFMC said.

Peter Vanacker, chief executive of Neste, said: “Neste has transformed from a regional oil refining company into a global leader in renewable solutions.

“The transportation of people and goods is undergoing a rapid change. To combat climate change the world needs new and more solutions for decreasing emissions.

“We are confident that in working closely together, the design and execution expertise of TechnipFMC will significantly further enhance the robustness of our NEXBTL technology as we grow our business where our strength lies,” Vanacker said.

Most recently, Neste inked a deal with airline KLM to supply its sustainable aviation fuel for flights out of Amsterdam's Schiphol Airport.

The sustainable fuel is produced by Neste from used cooking oil and will reduce CO2 emissions by up to 80% compared to fossil kerosene.

The renewables work will be handled by TechnipFMC's spin-off Technip Energies, which aims to play a key role in driving the global energy transition and will focus on the liquefied natural gas market.

Catherine MacGregor, chief executive-elect of Technip Energies, said: “This agreement confirms our leading position as a player geared towards technological advancement and solutions to support renewable fuels growth. It also reinforces our long-term relationship with Neste and our positioning in the energy transition journey.”

Earlier this month, TechnipFMC posted a net loss of about $2.4 billion in the 2019 fourth quarter after writing down almost the same amount in after-tax charges.

The fourth-quarter loss compared to a $2.26 billion loss in the same quarter of 2018 and came on revenues of $3.73 billion, up from $3.32 billion a year earlier.

The contractor had warned investors about the impending writedown as it is in the process of spinning off into two entities, with the split into Technip Energies and TechnipFMC due for completion in the second quarter of this year.