European refiner Neste will supply renewable diesel (RD) in Washington through a partnership with Coleman Oil's fuel distribution network in the state.
The agreement will expand availability of the drop-in fuel for the state's commercial transportation sector, including construction, agriculture, trucking and state municipalities, and follows Neste's recent renewable fuels joint venture with Marathon and Washington's Clean Fuel Standard (CFS) program.
The 50/50 joint venture with Marathon's Martinez, California, refinery will lift Neste's renewables capacity by 365mn USG/yr in early 2024 and could help supply Coleman with domestically produced RD.
Finland-based Neste was one of the first to supply RD into California and Oregon following the start of CFS programs in those states. The refiner's global RD capacity of 1.14bn USG/yr will increase early in 2024 to 1.9bn USG/yr as production ramps up at an expansion at its Singapore refinery, which could also supply Coleman, as well as at the Martinez joint venture, Neste said.
Fuel suppliers in Washington are required to gradually reduce the carbon intensity of their transportation fuels, under the state's CFS program.
Neste's renewable diesel reduces emissions by 75pc compared to traditional diesel, according to the company's website.
Coleman operates primarily in Washington but has other fuel distribution and retailing centers in Oregon, Idaho and Montana.