Neste says it will gradually transform the Porvoo oil refinery into a refinery for “renewable and circular economy solutions”. Investments of 2.5 billion are planned. The timing of phasing out of crude oil depends on the development of the market and legislation.
Liquid says that it plans to transform the entire Porvoo refinery into a “renewable and circular economy solutions” refinery over the next ten years. Currently, fuel liquids are produced in Porvoo from both crude oil and vegetable and waste fats.
Before long, the change will end the refining of crude oil in Porvoo. However, according to Neste's press release, the timetable for phasing out crude oil depends on the market and legislation.
The planned change will proceed in stages and will require several separate investment decisions over the next decade, Neste says in its press release. In practice, the decision means investments of around 2.5 billion euros, according to Neste.
The goal is to produce a total of approximately three million tons of renewable diesel, renewable aviation fuel and products used by the polymer and chemical industry in Porvoo.
“We want to be at the forefront of promoting the green transition with our renewable and circular economy solutions. The long-term transformation of the Porvoo refinery is a key part of our growth strategy for renewable products, and when completed, it will complete Neste's transformation journey to become a 100% supplier of renewable and circular economy solutions. It will also further strengthen our ability to meet our customers' future needs,” says CEO of Neste Matti Lehmus in the bulletin.
“Our decades of refining experience, our special expertise in refining challenging raw materials, and our professional staff make this change possible,” says the director of the Oil Products business unit Markku Korvenranta.
With liquid has large refineries in Rotterdam and Singapore that produce renewable fuels from waste and vegetable fats. The expansion of the Singapore refinery will increase the production capacity of renewable fuels to 4.5 million tons per year.
An expansion is under construction in Rotterdam, which will increase the production capacity by another 1.3 million tons by 2026.
Porvoo lost the competition for the location of the previous major investment to Rotterdam. In addition to renewable diesel, the new units are capable of producing large quantities of renewable jet fuel.
Liquid turnover in January–September this year was 16.6 billion euros, of which 6.2 billion came from renewable products and 9.5 billion from crude oil refining. The operating profit was 1,266 million euros, of which only about a quarter came from renewable products.
The company's profitability has improved this year towards the end of the year, when the refining margins of traditional fuels have increased. Neste closed its Naantalin refinery, which refined crude oil, in 2021.
The news is updated.
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