Neste, NuStar expand California sustainable aviation fuel project

By Stephanie Kelly

NEW YORK (Reuters) - Renewable fuels company Neste and terminal operator NuStar Energy have expanded a California project to increase their distribution of low-carbon aviation fuel, the companies said Tuesday.

Advocates for sustainable aviation fuel say the fuel is a way for the aviation industry to lower its carbon emissions to meet global efforts in fighting climate change. U.S. airlines and industry groups have been pushing the federal government to back a subsidy for the fuel to increase production.

Trucks at the NuStar-operated Selby Terminal near San Francisco can now load with sustainable aviation fuel supplied by Finland-based Neste, the companies said. The first gallons supplied through the expansion were picked up at the terminal and have been delivered to the nearby Monterey Regional Airport.

The location of the Selby terminal will allow Neste to supply sustainable aviation fuel to a growing number of airports across the western United States, the companies said in the announcement.

"We must act now to reduce emissions from air travel in order to preserve the many benefits flying brings to our lives and the economy," said Chris Cooper, vice president for renewable aviation for Neste in North America.

This is the latest collaboration between Neste and NuStar, based in San Antonio, Texas, around sustainable aviation fuel. In 2020, Neste supplied the fuel to San Francisco International Airport from the Selby Terminal using an existing pipeline.

The companies said they want to make the terminal into a hub for low-emission renewable fuels, including renewable diesel.

Neste has supplied about 220 million gallons of renewable diesel in California through the NuStar Selby Terminal over the last decade. Renewable diesel can power trucks and construction equipment.

(Reporting by Stephanie Kelly; Editing by Dan Grebler)