Neste has completed the strategic study to begin a gradual transformation of its crude oil refinery (pictured) in Porvoo, Finland into a leading renewable and circular solutions refining hub.
The planned transformation will proceed in phases, and requires multiple separate investment decisions during the next decade before targeted completion in the mid 2030s, Neste said.
The company expects the long-term capacity potential after the transformation to be about 3 million tonnes 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 €2.5bn.
Matti Lehmus, president and chief executive of Neste, said: “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.”
Markku Korvenranta, executive vice president of Neste’s 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.”
The planned Porvoo transformation will contribute to the realization of Neste’s climate commitments.
The final timeline for transitioning from crude oil to renewable and circular raw materials will be determined later in line with the actual fuel market demand, legislation development and transformation progress, Neste said.