Neste has launched a strategic study on transitioning its refinery in Porvoo, Finland to non-crude oil refining and into a renewable and circular solutions site.
Through co-processing and retrofitting of units, and benefiting from available refining assets, experience and know-how, Neste is aiming to “significantly grow” its renewables and circular production in Porvoo long term.
The transformation under study would start with the co-processing of both renewable and circular feedstock and could continue with retrofits of existing units at a later stage, with a long-term capacity potential of 2-4 million tonnes per year. The targeted transformation would lead to a discontinuation of crude oil refining in Porvoo in the mid-2030s.
Neste will also continue to actively study opportunities of green hydrogen at its Porvoo refinery.
These developments would “significantly contribute” to the realisation of Neste’s climate commitments and make Neste a “global frontrunner” in the transformation of the fossil fuel industry, the company said.
“Neste’s growth strategy is centred on renewable and circular solutions.
“We continue to set our ambition level high, launching this study on the long-term transformation path for our Porvoo refinery and targeting to ultimately replace crude oil with alternative feedstocks.
“The Porvoo site provides a flexible and large-scale base that can grow into a major site for our renewables and circular business,” said Matti Lehmus, President and CEO of Neste.
Transformation of such scale would create the need for significant investments over the coming decade and separate investment decisions would be taken as the planning proceeds.
As the time span of the plan is more than a decade, it would be built on modularity and flexibility and could be adjusted to reflect variations in the pace of change in both the renewable and circular businesses as well as in traditional refining, Neste stated.
Independently of the planned transition, Neste will continue to provide access to fossil fuel products for its customers.
From 202 Neste will be supplied with onshore wind electricity for its Porvoo refinery’s operations under a PPA with Ilmatar.
The PPA represents some 17% of the electricity consumption at the refinery in Porvoo.