Neste withdraws electrolyser project; reevaluates renewable H2 plan

Finnish energy company Neste has decided to pull back from a 120-MW electrolyser project aimed at producing renewable hydrogen at its Porvoo refinery. The move comes as a result of challenging market conditions and financial constraints, following the basic engineering phase of the project, which began in May 2023.

Neste’s decision is based on a strategic reassessment prompted by financial performance pressures and regulatory limitations affecting the project’s economic feasibility. The company cited the tight restrictions on the use of renewable hydrogen in refining processes to meet Finland’s national distribution obligation, which limits the optimal utilisation of an 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 Neste’s Oil Products business unit. “Our ambition remains to utilize renewable hydrogen at the Porvoo refinery, contributing also to the fulfillment of the Finnish renewable fuels of non-biological origin (RFNBO) distribution obligation.”

Neste is now focusing on collaborative efforts with partners to develop hydrogen ecosystems connected to the Porvoo refinery. Despite the discontinuation of this project, the company remains committed to integrating renewable hydrogen to support Finland’s renewable fuel goals and bolster hydrogen-based energy solutions.