Neste to re-evaluate its renewable hydrogen plan and withdraw from investing into a 120 MW electrolyzer at the Porvoo refinery
Neste has withdrawn its investment in a 120 MW electrolyzer project for renewable hydrogen at its Porvoo refinery in Finland due to challenging market conditions and financial performance. Limitations on renewable hydrogen usage hindered the project’s economic viability. Despite this setback, Neste is exploring alternative pathways for securing renewable hydrogen and developing hydrogen ecosystems connected to the refinery.
Neste has decided to withdraw from investing into a 120 MW electrolyzer project to produce renewable hydrogen 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 hydrogen in the refinery’s processes in fulfilling the Finnish national distribution obligation. These limitations prevent the full economic utilization of electrolyzer of this size.
“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,” says Markku Korvenranta, Executive Vice President for Oil Products business unit at Neste.
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