Finnish oil refiner Neste has said it intends to invest some $3 billion to convert its Porvoo crude oil refinery to a biofuels production facility.
Biofuels are an important emerging risk in the energy sector as industries and transport operators seek greener alternatives for fuels to cut their emissions.
The company expects the long-term capacity potential after the transformation to be about 3 million tons of renewable and circular products, such as renewable diesel, sustainable aviation fuel and both renewable and circular feedstock for the polymers and chemicals industry.
The total investment estimate for the transformation roadmap is approximately EUR 2.5 billion.
“The COP28 declaration is a strong signal to all of us, and we want to be in the forefront of accelerating the green transition with our renewable and circular solutions,” said Neste CEO Matti Lehmus.
“The long term transformation of the Porvoo refinery is a key element in our renewables growth strategy, completing Neste’s journey to a 100% renewable and circular solutions provider when finalized. This will further strengthen our position in serving the future needs of our customers.”
Markku Korvenranta, EVP in the company’s Oil Products business unit added: “The demand for fossil fuels is declining in our traditional markets due to the growing share of renewable fuels and electrification. I am excited to start this transformation roadmap of the Porvoo refinery to proactively create a sustainable future for the site.”