Neste Corporation, a leader in renewable fuels, has decided not to proceed with its planned investment in a 120 MW electrolyzer for renewable hydrogen production at its Porvoo refinery in Finland.
The decision came after completing the basic engineering phase initiated in May 2023. The main reasons for this withdrawal include challenging market conditions and financial performance issues, which prompted a reassessment of new investments.
A significant factor influencing this decision is the strict limitations on using renewable hydrogen in the refinery processes, which impact the full economic viability of such a large electrolyzer installation.
Despite halting the initial project, Neste remains focused on exploring alternative avenues to secure renewable hydrogen for its Porvoo refinery. The company’s ambitions include contributing to the Finnish renewable fuels of non-biological origin (RFNBO) distribution obligation. Markku Korvenranta, Executive Vice President for the Oil Products business unit at Neste, expressed the company’s commitment to working with partners to develop hydrogen ecosystems related to Porvoo refinery operations.
