Neste to re-evaluate its renewable H2 plan and withdraw from investing into a 120-MW electrolyzer at the Porvoo refinery
Neste has decided to withdraw from investing into a 120-MW electrolyzer project to produce renewable hydrogen (H2) at its Porvoo refinery in Finland. The decision follows the completion of the basic engineering phase, which commenced in May 2023.
The reasons behind the withdrawal are the company’s challenging market conditions and financial performance, requiring critical assessment of any new investments.
Evaluation of this project has been impacted by the tight limitations on the use of renewable H2 in the refinery’s processes in fulfilling the Finnish national distribution obligation. These limitations prevent the full economic utilization of an electrolyzer of this size.
“While we are discontinuing the initial renewable H2 project, we are actively evaluating alternative pathways for securing renewable H2 in Porvoo. Our ambition remains to utilize renewable H2 at the Porvoo refinery, contributing also to fulfillment of the Finnish renewable fuels of non-biological origin (RFNBO) distribution obligation. Together with our partners, we continue the work to develop H2 ecosystems connected to our Porvoo refinery,” said Markku Korvenranta, Executive Vice President for Oil Products business unit at Neste.
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