Neste choses Rotterdam for its next refinery

The state-run petroleum company Neste has selected Rotterdam in the Netherlands as the location for its possible next world-scale renewable products refinery, said the company in a press release on Monday.

Neste announced in March 2020 its intention to increase its production capacity of renewable products in Europe. The company has now concluded a thorough study phase about two possible locations – Porvoo, Finland and Rotterdam in the Netherlands.

Neste has existing sites in both the places. While there are many positive drivers for both sites, the difference between the costs is significant in favour 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,” said Nesye President and CEO Peter Vanacker.

“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,” added 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, the 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 its Board of Directors towards the end of 2021 or by early 2022.