Finnish company Neste has completed the strategic study and begins a gradual transformation of its crude oil refinery in Porvoo into a renewable and circular solutions refining hub.
Neste launched the strategic study in September 2022 with an aim to significantly grow its renewables and circular production in Porvoo long term, starting with the co-processing of both renewable and circular feedstock which could lead to retrofits of existing units at a later stage, with a long-term capacity potential of 2 to 4 million tonnes per year.
The targeted transformation would lead to a discontinuation of crude oil refining in Porvoo in the mid-2030s.
Having concluded the study, the company said the planned transformation will proceed in phases, with multiple separate investment decisions required during the next decade before targeted completion.
The company expects the long-term capacity potential after the transformation to be about 3 million tons of renewable and circular products, such as renewable diesel, sustainable aviation fuel, and both renewable and circular feedstock for the polymers and chemicals industry. The total investment estimate for the transformation roadmap is approximately €2.5 billion.
“The COP28 declaration is a strong signal to all of us, and we want to be in the forefront of accelerating the green transition with our renewable and circular solutions. The long term transformation of the Porvoo refinery is a key element in our renewables growth strategy, completing Neste’s journey to a 100% renewable and circular solutions provider when finalized. This will further strengthen our position in serving the future needs of our customers,” said Matti Lehmus , the President and CEO of Neste.
Markku Korvenranta , Executive Vice President in Oil Products business unit, added: “The demand for fossil fuels is declining in our traditional markets due to the growing share of renewable fuels and electrification. I am excited to start this transformation roadmap of the Porvoo refinery to proactively create a sustainable future for the site. This transformation will be made possible by our decades long refining experience, specific expertise in processing challenging raw materials, and our highly skilled employees.”
Recently, Neste was granted an energy investment aid of €1.96 million for heat recovery from the green hydrogen production planned for the Porvoo refinery.