Neste aiming for global 100 percent renewable electricity use by 2023
Committed to reaching carbon neutrality in its production by 2035, Finland-headed oil refiner, renewable fuels, and products producer Neste Oyj is aiming to reach 100 percent renewable electricity use in its production globally by 2023. In order to proceed with this target, Neste will increase the use of renewable electricity at its Porvoo refinery in Finland and has signed a new wind power purchase agreement (PPA) with wind power company Ilmatar.
According to Neste, renewable electricity from wind is one of the key ways to reduce greenhouse gas (GHG) emissions related to the electricity purchases of production facilities. In addition to the new wind power agreement, Neste entered into an agreement with Ilmatar in 2020 and committed to increasing the use of renewable energy in production with its wind power agreement with Fortum in late 2019.
As a result of these agreements, approximately 40 percent of the electricity used at its Porvoo refinery in Finland will be renewable wind power in 2025. The first wind power deliveries from the Fortum Kalax wind farm to the Neste Porvoo site began in January 2021.
In addition to the wind power agreements, Neste will increase the share of renewable electricity with so-called Guarantees of Origin (GO), based on existing renewable electricity generation capacity. Guarantees of Origin will help increase the share of renewable electricity to 100 percent of Neste’s electricity needs by 2023.
Investments in renewable electricity support our target of reaching carbon neutrality in our production by 2035. Wind power is one of the approximately 80 measures we have identified to reduce greenhouse gas emissions in our operations. Our aim is to increase the use of renewable electricity at the Porvoo refinery to 100 percent by the end of 2023, said Marko Pekkola, EVP Oil Products at Neste.
The newly-signed long-term wind power agreement with Ilmatar corresponds to approximately 200 GWh per annum, representing some 17 percent of the electricity consumption at Neste’s refinery in Porvoo. Ilmatar’s wind power deliveries are expected to begin in early 2025.
The new wind power agreement helps Neste to reduce the indirect GHG emissions – so-called scope 2 emissions as defined by the Greenhouse Gas Protocol – of electricity purchases at Porvoo refinery in Finland annually by approximately 50 000 tonnes of carbon dioxide equivalents (CO2eq).
With all the wind power agreements combined, Neste will reduce scope 2 GHG emissions of its electricity purchases at its Finnish production sites by approximately 120 000 tonnes CO2eq per annum as calculated on the basis of the 2019 residual mix published by the Finnish Energy Authority.