Neste converting refinery to renewables hub

Petrochemical producer Neste has announced it is converting a crude oil refinery in Finland into a renewables refining hub.

The planned transformation will take place in phases, and Neste said it will require multiple separate investment decisions during the next decade. The total investment estimate for the transformation is approximately 2.5 Billion euros.

The project is intended to be completed in the mid-2030s. The targeted transformation would lead to a discontinuation of crude oil refining at the Porvoo, Finland, facility.

The company said it expects the long-term capacity potential after the transformation to be about three million tons 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 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,” said Matti Lehmus, president and CEO of Neste.

“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.”

The company launched a study in 2022 looking into the feasibility of the transition. Neste will also continue to actively study opportunities of green hydrogen at its Porvoo refinery.