Finland and The Netherlands – Neste has narrowed down the location choice for its new renewable products production site to Porvoo, Finland and Rotterdam, The Netherlands.
The company has concluded a thorough study phase concerning the two possible locations. While there are many positive drivers for both sites, the difference between the costs is significant in favor of Rotterdam.
Neste aims at creating readiness for a final investment decision by the Board of Directors towards the end of 2021 or early 2022.
Site selection criteria
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.
Porvoo vs. Rotterdam
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.