Finland-headed oil refiner and renewable fuels and products producer Neste Oyj has announced that has signed a renewable power purchase agreement (PPA) with Norway-headed Statkraft ASA, Europe's largest producer of renewable energy. Statkraft will begin the wind power deliveries to Neste's Porvoo refinery in Finland in mid-2022.
Neste is committed to combat climate change and reduce climate emissions both globally and locally. To support this, the company has two climate commitments. The signed agreement supports Neste’s commitment to reduce the carbon footprint of its production and to reach carbon-neutral production by 2035.
Neste’s other climate commitment is to reduce customers’ greenhouse gas (GHG) emissions with its renewable and circular solutions by at least 20 million tonnes carbon dioxide equivalents (CO2eq) annually by 2030.
Our aim is to use 100 percent renewable electricity globally by 2023. We are increasing the use of renewable wind power at the Porvoo refinery, as it is one of the key measures to reduce greenhouse gas emissions of our production, said Sami Oja, acting EVP, Oil Products at Neste.
In addition to its agreement with Statkraft, Neste’s wind power partners are Ilmatar and Fortum. Neste has been using wind power at the Porvoo refinery since the beginning of 2021. Currently, about 20 percent of the refinery’s electricity consumption is covered by renewable wind power.
The total annual capacity of the wind power agreement with Neste and Statkraft is approximately 215 GWh, which corresponds to some 18 percent of the electricity consumption at Neste’s refinery in Porvoo, Finland. This will reduce the refinery’s indirect GHG emissions (Scope 2 emissions as defined by the Greenhouse Gas Protocol) of electricity purchases annually by approximately 53 000 tonnes CO2 eq.
Including previous agreements, Neste will reduce indirect GHG emissions of its electricity purchases for its production in Finland by approximately 170 000 tonnes CO2 eq calculated on the basis of the 2019 residual mix published by the Finnish Energy Authority.