Rhys BerryNeste has announced it has decided to withdraw from investing in a 120 MW electrolyser 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.
In a statement issued today (24 October), Neste cited the company’s ‘challenging market conditions and financial performance’, requiring ‘critical assessment of any new investments’ as reasons behind the decision.
The company added that evaluation of the project has been impacted by what it called the: ‘tight limitations on the use of renewable hydrogen in the refinery’s processes in fulfilling the Finnish national distribution obligation.’ These limitations, said Neste, prevent the full economic utilisation of electrolyser of this size.
‘While we are discontinuing the initial renewable hydrogen project, we are actively evaluating alternative pathways for securing renewable hydrogen in Porvoo,’ said Markku Korvenranta, Executive Vice President for Oil Products business unit at Neste.
‘Our ambition remains to utilise renewable hydrogen at the Porvoo refinery, contributing also to fulfilment 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.’
Image: Neste
Ariane Morrissey
