Neste proceeds to basic-engineering phase for green-hydrogen project in Porvoo, Finland

In accordance with its ambition to reach carbon-neutral production by 2035, Neste Corp. is working on a 120-megawatt (MW) electrolyzer project to produce renewable, green hydrogen at its Porvoo refinery in Finland.

The company has now decided to proceed to the basic-engineering phase with the project.

The investment-decision readiness is expected to be reached early next year.

If an investment decision is made, green-hydrogen production could start in 2026.

“Our project is one of the largest development projects to produce green hydrogen in the European refineries and it supports our goal to transform the Porvoo refinery to the most sustainable refinery in Europe by 2030,” said Markku Korvenranta, the executive vice president in Neste’s oil-products division. “The green hydrogen would be primarily used in our Porvoo refinery’s processes, where it would replace hydrogen produced from fossil feedstocks.”

Production of green hydrogen also generates renewable heat.

In connection with the 120 MW green-hydrogen project, Neste has started a preliminary study with Porvoon Energia on the utilization of renewable heat in district heating.

Porvoon Energia is a regional Finnish energy company focusing on heat and electricity production and distribution as well as development of the electricity network.

Hydrogen projects at Neste’s Porvoo refinery contribute considerably to the EU green-hydrogen value chain.

Last July, Neste became the first Finnish company to receive “Important Project of Common European Interest” status from the European Commission for its hydrogen projects.

In December, Business Finland awarded Neste 27.7 million euros (USD$30.6 million) of public funding for its green-hydrogen projects at the Porvoo refinery.