Neste selects Rotterdam for its next renewable products refinery

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Type of post: NEWS IN BRIEF.

Neste has selected Rotterdam as location for its possible next world scale renewable products refinery and aims at taking a final investment decision towards the end of 2021 or early 2022.
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Figure 1. Neste’s biorefinery in Rotterdam (taken from the press release)

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 (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.

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.

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