Finland-headed oil refiner and renewable products major Neste Oyj has announced the completion of a strategic study of its crude oil refinery in Porvoo and will begin a gradual transformation of Porvoo 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.
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 (SAF), and both renewable and circular feedstock for the polymers and chemicals industry.
The COP28 declaration is a strong signal to all of us, and we want to be at 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 percent renewable and circular solutions provider when finalized. This will further strengthen our position in serving the future needs of our customers, said Matti Lehmus, President and CEO of Neste.
The total investment estimate for the transformation roadmap is approximately EUR 2.5 billion.
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, said Markku Korvenranta, EVP of the Oil Products business unit.
The planned Porvoo transformation will contribute to the realization of Neste’s climate commitments.
The final timeline for transitioning from crude oil into a renewable and circular solutions refining hub will be determined later in line with the actual fuel market demand, legislation development, and transformation progress.
