Neste signs EU grant agreement for clean hydrogen project in Porvoo
Neste has formally signed a grant agreement with the EU's Innovation Fund for its clean hydrogen project, 'SHARC', at its Porvoo refinery. The project aims to significantly reduce emissions.
Neste has finalized a grant agreement with the Climate, Infrastructure and Environment Executive Agency (CINEA) of the European Commission for its 'SHARC' project. The agreement secures EUR 88 million in funding for the clean hydrogen initiative at Neste's Porvoo refinery in Finland. The project focuses on introducing electrolysis and carbon capture and storage (CCS) solutions to reduce greenhouse gas emissions.
The 'SHARC' project is expected to achieve a reduction of over 4 million tons of CO2 emissions at the Porvoo refinery within the first 10 years of operation. This initiative is designed to accelerate the green transition and contribute to both Finland's and the EU's climate targets. It also aligns with Neste's objective of achieving carbon-neutral production by 2035.
While the project is currently in its feasibility phase and no final investment decision has been made, operations are planned to commence around the mid-2020s. Neste indicates that the project will also lay the groundwork for future utilization of carbon dioxide and the production of electrofuels at the Porvoo facility.
The EU Innovation Fund is a significant global funding mechanism for climate technologies, supporting large-scale demonstration projects aimed at reducing greenhouse gas emissions.