Neste Oyj Starts Strategic Review to End Refining in Finland

Neste Oyj, Finland’s only oil refiner, has begun studying how it will end the processing of crude in the Nordic country by the middle of the next decade.

The world’s biggest maker of renewable diesel said its refinery in Porvoo, which already makes biofuels, would undergo a transformation starting with the co-processing of both renewable and circular feedstock, according to a statement. A spokeswoman contacted by Bloomberg News verified the statement. 

The transition could continue with retrofits of existing units at a later stage and the targeted transformation would lead to a discontinuation of crude oil refining in Porvoo in the mid-2030s, the company said. It will also continue to actively study opportunities of green hydrogen at the site.

Neste is seen as somewhat of a pioneer in the oil industry having made its first investment in renewable diesel -- a product made entirely from renewable raw materials -- as early as 2005. After initially being unprofitable, the product overtook traditional oil products as the company’s main profit driver in 2018. The refiner is also processing sustainable aviation fuel from waste and makes renewable polymers and chemicals.

Porvoo’s track record of making fuel from crude goes back to 1965. Neste previously ran another small refinery in Finland, but shuttered the Naantali plant in southwestern Finland last year.

Becoming a pure-play renewables company would require “significant investments over the coming decade,” Neste said, adding that any such investment decisions would be taken as the planning progresses.