- Neste withdraws from 120 MW electrolyzer project at Porvoo refinery.
- Basic engineering phase completed in May 2023.
- Challenging market conditions and financial performance influenced decision.
- Limitations on renewable hydrogen use impact economic viability.
Project Withdrawal
Neste Corporation has decided to withdraw from its planned investment in a 120 MW electrolyzer project aimed at producing renewable hydrogen at the Porvoo refinery in Finland. This decision comes after the completion of the basic engineering phase, which began in May 2023.
Reasons for Withdrawal
The withdrawal is attributed to challenging market conditions and the company's financial performance, necessitating a critical assessment of new investments. Additionally, the project faced limitations on the use of renewable hydrogen in the refinery's processes, impacting its economic viability. These limitations are tied to the Finnish national distribution obligation, which restricts the full utilization of an electrolyzer of this size.
Future Plans
Despite discontinuing the initial project, Neste remains committed to exploring alternative pathways for securing renewable hydrogen at the Porvoo refinery. The company aims to contribute to the fulfillment of the Finnish renewable fuels of non-biological origin (RFNBO) distribution obligation. Neste, in collaboration with its partners, continues to work on developing hydrogen ecosystems connected to the Porvoo refinery.
