NESTE, a Finnish producer of renewable fuels, has announced its decision to establish a large-scale renewable products refinery in Rotterdam, the Netherlands, instead of Porvoo, Finland.
Peter Vanacker, the CEO of Neste, on Monday stated that the decision was made based on constructive open dialogue with authorities in both countries and a thorough assessment of the advantages and disadvantages of each site candidate.
“Based on the thorough studies and calculations, the overall cost of investment is significantly lower in Rotterdam,” he stated in a press release.
The cost difference, the press release indicates, stemmed particularly from logistics costs, site-specific construction costs and the availability of low-carbon hydrogen supply. The selection criteria also included factors such as the current infrastructure, market environment, regulatory framework, raw material sourcing opportunities and local synergies and incentives.
Minister of Economic Affairs Mika Lintilä (Centre) on Monday conceded that the facts were simply against Porvoo, a roughly 50,000-resident town in Uusimaa, Southern Finland.
“We lost purely for cost reasons. The cost difference was so substantial, if we start talking about investments where the difference is a third or something in that range,” he commented to Helsingin Sanomat. “We’re disappointed of course, but because this is a consequence of things we can’t do anything about we’ll just have to face the facts.”
Helsingin Sanomat has written earlier that Neste would save roughly 500 million euros by setting up the facility in Rotterdam instead of Porvoo.
The Finnish state owns about 44 per cent of shares in the renewable fuels company.
Aleksi Teivainen – HT