Singapore was chosen as the site of Neste Oil's renewable diesel plant because of its proximity to countries that produce palm oil - the raw material needed for renewable diesel - as well as its infrastructure and strong government support

Finnish energy firm Neste Oil is currently building the world's largest renewable diesel plant in Singapore. Despite the current economic downturn, the S$1.2 billion (US$775 million) project is forging within the schedule. The plant which is located in Tuas, will commence operations in 2010 and will hire up to 100 staff.

The plant will have an annual capacity of 800,000 metric tonnes, making it the largest facility in the world. According to Jarmo Honkamaa, Deputy CEO, Neste Oil, the company expects the renewable fuel demand to grow in Asia in the long term, and it is negotiating with big oil companies to take renewable diesel from its Singapore and Rotterdam plants.

Singapore is playing an active role in the field of renewable energy and the government has invested some S$170 million (US$110 million) towards boosting clean energy research. Lim Hng Kiang, Singapore's Minister of Trade and Industry, explains, "Singapore wants to grow our industries in a sustainable and responsible way. We may be a small city-state lacking in natural resources, but we are committed in supporting the implementation and creation of technologies that can address the environmental challenges facing us."