Neste withdraws from 120 MW renewable hydrogen project at Porvoo refinery

Neste Oyj has decided to withdraw from an investment into a 120 MW electrolyzer project intended to produce renewable hydrogen at its Porvoo refinery in Finland. The decision follows the completion of the basic engineering phase, which began in May 2023.

The company cited challenging market conditions and financial performance as key reasons for the withdrawal, necessitating a critical assessment of new investments. Furthermore, limitations on the use of renewable hydrogen in refinery processes for fulfilling Finland's national distribution obligation restrict the full economic utilization of an electrolyzer of this scale.

"While we are discontinuing the initial renewable hydrogen project, we are actively evaluating alternative pathways for securing renewable hydrogen in Porvoo. Our ambition remains to utilize renewable hydrogen 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 hydrogen ecosystems connected to our Porvoo refinery," stated Markku Korvenranta, Executive Vice President for Oil Products at Neste.

Neste continues to work with partners to develop hydrogen ecosystems around the Porvoo refinery as part of its broader strategy to transform the facility into Europe's most sustainable refinery, aiming for carbon-neutral production by 2035.