How Renewable Energy Directives Affect Neste´s Biobased Paraffine Diesel´s Market Outlook – Case Neste
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School of Business |
Bachelor's thesis
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Date
2020
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Mcode
Degree programme
(Mikkeli) Bachelor’s Program in International Business
Language
en
Pages
34 + 2
Series
Abstract
Objectives The main objectives of this study were to explore and identify the ways that directives set by the European Union affect the company operations in its sector. The sector in question in this research is the renewable energy production, and in detail the renewable diesel oils. Also, one of the objectives is to identify how, and with which actions the companies can benefit from the regulatory environment. Summary The phenomenon of moving towards more environmentally friendly alternatives for energy sourcing in transportation sector. Especially the development in European Union with the large-scale regulatory business environment has been encouraging to meet the targets in utilization renewable diesel as energy source in transportation. The directives offer an incentivized marketplace for the producers of renewable diesel and continues to do so in continuing manner. The transportation sector is in a transformative situation and so is the market. In this thesis, a combination of qualitative research and existing literature were used to examine the topic. Qualitative interview was conducted with a specialized expert of implementing EU directives on renewable energy to Finnish legislation and how it affects the sector in question. Also, a market leading company of renewable diesel sales was examined through publications and press releases to form case like scenario in forming a market outlook. Conclusions The research concluded that companies in business of renewable fuels have certainty of growth up until 2030 in the government boosted sector. The incentives to invest are fixed to future which decreases the uncertainty of the emerging market. The predicted growing demand is combined of trend of increased use of environmentally friendly alternatives, and the obligations that are monitored and by EU member states. The market is not only fixed on end user demand but also the other fuel distributors, since they do not necessarily have enough capacity to meet the demands of obligations and have to buy from competitors in fear of fines.Description
Thesis advisor
Rikkonen, PasiKeywords
energy policy, fuels, energy, European Union, incentive plans, investment incentives, uncertainty