Neste Corporation, Press Release, 15 March 2021 at 10 a.m. EET
Neste announced in March 2020 an intention to increase its renewable products production capacity in Europe according to the company strategy. The company has now concluded a thorough study phase concerning the two possible locations, Porvoo, Finland and Rotterdam in the Netherlands. Neste has existing sites in both locations. While there are many positive drivers for both sites, the difference between the costs is significant in favor of Rotterdam.
"I appreciate the open dialogue we have had with the authorities both in Finland and in the Netherlands throughout the study phase. We have witnessed a constructive approach to find the best solutions to support our future growth", says Peter Vanacker, President and CEO of Neste.
"Based on the thorough studies and calculations, the overall cost of the investment is significantly lower in Rotterdam. Our decision relies on ensuring our future competitiveness and our renewables' growth strategy execution", continues Vanacker.
The criteria for site selection include current markets and regulatory framework supporting market growth, raw material sourcing opportunities, investment and operating costs, infrastructure and low carbon utilities as well as local synergies and incentives.
The key aspects contributing to the overall cost difference are logistics costs, site-specific construction costs and availability of low-carbon hydrogen supply. Further, Porvoo site is more complex which leads to a higher execution risk level and longer construction schedule. Rotterdam, in turn, benefits from the proximity of new markets for Renewable Aviation and Renewable Polymers and Chemicals as well as proximity to raw material sources.
Neste aims at creating readiness for a final investment decision by the Board of Directors towards the end of 2021 or early 2022. In any case, the company is investing significantly in Finland, and in particular to the Porvoo site, driven by the commitment to reach carbon neutral production by 2035. Further, Neste is accelerating its investments also into future technologies and raw materials. Finland is, and continues to be, the company's Research, Development and Innovation hub.
Vice President, Communications
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Further information: Please contact Neste's media service, tel. +358 50 458 5076 / email@example.com (weekdays from 8.30 a.m. to 4.00 p.m. EET).
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world's leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. As a technologically advanced refiner of high-quality oil products with a commitment to reach carbon-neutral production by 2035, we are also introducing renewable and recycled raw materials such as waste plastic as refinery raw materials. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world's most sustainable companies. In 2020, Neste's revenue stood at EUR 11.8 billion, with 94% of the company's comparable operating profit coming from renewable products. Read more:neste.com