Neste's Porvoo Refinery to Gradually Shift Towards Renewable and Circular Solutions

Neste, a Finnish energy company, embarked on an ambitious strategic study in September 2022. The study was aimed at significantly expanding the company's renewable and circular production capacity at its Porvoo facility over the long haul. The primary focus of this strategic exploration was the co-processing of both renewable and circular raw materials, with potential subsequent retrofits of existing units. The long-term capacity target was set between 2 to 4 million tonnes annually.

Upon completion of the study, it was revealed that the envisaged transformation would be a gradual process, requiring several distinct investment decisions over the next decade. These decisions are crucial for achieving the completion of the transformation. Neste has a vision for the Porvoo site to cease crude oil refining by mid-2030s.

Post-transformation, Neste anticipates a long-term capacity of approximately 3 million tons dedicated to renewable and circular products. This includes renewable diesel, sustainable aviation fuel, and both renewable and circular feedstock serving the polymers and chemicals industry. The estimated investment for this transformative journey is around €2.5 billion.

Matti Lehmus, the President and CEO of Neste, reiterated the company's commitment to spearheading the green transition, particularly in the wake of the COP28 declaration. The long-term transformation of the Porvoo refinery plays a central role in Neste's renewables growth strategy, setting the stage for the company to emerge as a 100% renewable and circular solutions provider. Lehmus perceives this as a strategic move to strengthen Neste's position in catering to the evolving needs of its customers.

Markku Korvenranta, Executive Vice President in the Oil Products business unit, recognized the declining demand for fossil fuels in traditional markets due to the rising prominence of renewable fuels and electrification. He expressed excitement about initiating the transformation roadmap for the Porvoo refinery, envisioning it as a proactive step toward carving a sustainable future for the site. Korvenranta highlighted that Neste's vast refining experience, specialized expertise in processing challenging raw materials, and the proficiency of its highly skilled employees would be key in actualizing this transformative vision.

In a recent development, Neste secured an energy investment aid of €1.96 million, earmarked specifically for heat recovery from the planned green hydrogen production at the Porvoo refinery. This additional support reinforces Neste's commitment to integrating innovative and sustainable practices into its operations, aligning with its broader vision for a renewable and circular future. This step is a testament to Neste's commitment to sustainability and the pursuit of innovative solutions that contribute to a greener future.