Neste halts investment in 120MW electrolyzer at Porvoo refinery as it reevaluates green-hydrogen plan
- Neste Corp.
- Oct 25, 2024
- 1 min read
Neste Corp. announced Oct. 24 that it has decided to withdraw from investing into a 120-megawatt electrolyzer project 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 reasons behind the withdrawal are the company’s challenging market conditions and financial performance, requiring critical assessment of any new investments, the company stated.
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, according to Neste.
As a result, these limitations prevent the full economic utilization of electrolyzer of this size, the company said.
“While we are discontinuing the initial renewable hydrogen project, we are actively evaluating alternative pathways for securing renewable hydrogen in Porvoo,” said Markku Korvenranta, the executive vice president for Neste’s oil-products business unit.
“Our ambition remains to utilize renewable hydrogen at the Porvoo refinery, contributing also to fulfillment of the Finnish renewable fuels of nonbiological origin (RFNBO) distribution obligation,” Korvenranta added. “Together with our partners, we continue the work to develop hydrogen ecosystems connected to our Porvoo refinery.”
