As e-commerce giants like Amazon continue to expand, the environmental impact of increased deliveries becomes a growing concern. With Amazon's Prime Days kicking off today, we explore how renewable fuels can mitigate the carbon footprint of large-scale logistics operations. We reached out to Carrie Song from Neste, a leader in renewable fuel solutions, to share with us some insights into the potential of renewable diesel (RD) and sustainable aviation fuel (SAF) in transforming the transportation sector.
Renewable Diesel and Sustainable Aviation Fuel represent significant advancements in sustainable transportation. Song explains the production process:
"The first step of producing RD and SAF is collecting renewable raw materials such as used cooking oil. After pre-treatment to remove impurities, these materials are shipped to refineries. RD is produced through hydrotreating, which involves treating triglycerides with hydrogen. This process removes oxygen molecules, producing hydrocarbons chemically similar to those in fossil diesel."
For SAF, the process includes additional steps: "After this step, to get SAF, the product needs to be further distilled and refined to meet the required specifications, namely ASTM 7566."
The key advantage of renewable fuels lies in their carbon footprint. Song notes, "Renewable fuels are produced by utilizing the already existing carbon stored in the renewable raw materials in nature. When the fuel is combusted, the carbon dioxide it emits is not considered as adding new carbon to the atmosphere."
This fundamental difference translates to significant emissions reductions. According to Song, Neste's renewable diesel and sustainable aviation fuel can reduce greenhouse gas (GHG) emissions by up to 75% and 80% respectively over their lifecycles compared to their fossil fuel counterparts.
One of the most appealing aspects of RD and SAF is their compatibility with current systems. Song emphasizes, "Both SAF and RD are drop-in solutions, meaning they are 100% compatible with the existing infrastructure and engines." This seamless integration eliminates the need for costly modifications to vehicles or fueling systems.
While renewable fuels currently come at a premium, Song argues for their long-term value: "Renewable solutions, though a bit more expensive right now, will win in the long-term as they are what society, investors, and customers want." She also points out that regulatory support, such as clean fuel programs in states like California, Oregon, and Washington, is helping to make renewable diesel cost-competitive with fossil diesel.
The primary challenge facing the industry is scaling up production to meet growing demand. Song mentions that accessibility can also be an issue, which Neste is addressing through partnerships with energy infrastructure owners to create more distribution hubs.
Looking ahead, Song highlights Neste's commitment: "Neste is committed to supporting our customers to reduce their GHG emissions by at least 20 million tons annually by 2030 through our renewable products." She anticipates continued growth in demand for renewable and circular solutions, driven by businesses, regulations, and environmentally conscious consumers.
As businesses increasingly prioritize sustainability, renewable fuels offer a promising path forward. With their significant environmental benefits, compatibility with existing infrastructure, and growing regulatory support, RD and SAF are poised to play a crucial role in the future of sustainable transportation. Forward-thinking companies would do well to consider integrating these innovative fuels into their logistics and aviation operations.
Carrie Song is Senior Vice President, Commercial, Renewable Products at Neste, the world’s leading producer of sustainable aviation fuel, renewable diesel and a forerunner in developing renewable and circular feedstock solutions for polymers and chemicals. She leads the commercial operations of Neste’s Renewable Products business unit in the Americas, Europe, and APAC regions. She oversees financial performance deliveries, end to end value chain optimization, and business development of Neste’s full renewable product portfolio. Carrie joined Neste in 2020 and in her previous role as the VP Renewable Road Transportation, she was responsible for Neste’s increasing development and expansion efforts in the Americas region. Carrie has a track record of success in driving business growth for various Fortune 500 companies in a variety of industries, including global commodity trade, capital goods, consulting, energy, and oil and gas. Carrie holds a BA in Economics, a Master in Management, and a Master in Marketing.
