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Neste Oil's Singapore refinery. Image courtesy of Neste Oil.

Neste Oil Singapore signed a deal Friday with Singapore-based National Oxygen (NOX) to install a new carbon dioxide (CO2) recovery and liquefaction plant at its renewable diesel refinery in Singapore.

The value of the contract and the cost of the project were not disclosed.

NOX is a wholly owned subsidiary of Japan’s Taiyo Nippon Sanso Corporation.

The carbon dioxide recovery plant will capture and process an average 40,000 tons of CO2-rich gas from the refinery every year.

The captured and processed CO2 gas can be sold for industrial use.

Construction is expected to start in the fourth quarter of 2014 and the plant is projected to go online by the fourth quarter of 2015.

Neste’s Singapore refinery has a capacity of 800,000 tons per year.

Neste currently has a carbon dioxide recovery plant installed at its 200,000 bpd Porvoo refinery in Finland.

The Porvoo plant captures about 156,500 tons of CO2 produced every year during the refining process. The gas is processed and sold to local companies.

“The new recovery plant will improve the refinery’s resource efficiency and see one of our sidestreams become a valuable raw material for NOX,” Neste’s vice president in energy Jussi Hintikka said.

Neste Oil Singapore is a wholly owned subsidiary of Finland-based Neste Oil.