Neste to transform Finnish crude oil refinery into renewable solutions hub
Neste, a global leader in renewable and circular solutions, has announced the commencement of a transformative project for its Porvoo crude oil refinery in Finland. Following a strategic study initiated in September 2022, the refinery will gradually evolve into a state-of-the-art hub for renewable and circular solutions, with the transformation expected to be completed by the mid-2030s.
Phased transformation approach
The transformation of the Porvoo refinery will proceed in phases, requiring multiple investment decisions over the next decade. Neste anticipates a long-term capacity potential of approximately 3 million tons of renewable and circular products post-transformation. These products include renewable diesel, sustainable aviation fuel, and renewable and circular feedstock for the polymers and chemicals industry. The total investment for this roadmap is estimated at around EUR2.5 billion (USD2.7 billion).
Matti Lehmus, president and CEO of Neste, emphasised the company’s dedication to leading the green transition. “The COP28 declaration has been a catalyst for us, and we are committed to accelerating the shift with our renewable and circular solutions. Transforming the Porvoo refinery is a pivotal element in our strategy to become a 100% renewable and circular solutions provider, thereby reinforcing our role in meeting future customer needs,” he said.
Adapting to market shifts
Markku Korvenranta, executive vice president of the Oil Products business unit, highlighted the declining demand for fossil fuels in traditional markets due to renewable fuels and electrification.
“We are excited to embark on this roadmap, transforming the Porvoo refinery to proactively shape a sustainable future. Our extensive refining experience and expertise in processing challenging raw materials, backed by our skilled workforce, make this transformation feasible,” he said.
The Porvoo refinery’s transformation aligns with Neste’s climate commitments. The timeline for transitioning from crude oil to renewable and circular raw materials will be determined based on fuel market demand, legislative developments, and transformation progress.
