Neste Corporation
Stock Exchange Release
16 March 2016 at 11 am. (EET)
Power plant arrangement between Neste, Veolia and Borealis closed
A joint project between Neste, Veolia and Borealis to arrange power plant operations and build a new power plant in Kilpilahti, Porvoo, Finland has been confirmed in the form it was announced in December 2015. The banks funding the project have given their final commitment to the plan. In the arrangement, Neste will transfer its existing power plant to Kilpilahti Power Plant Limited (KPP). The company will build a new combined heat and power plant in Porvoo to match the needs of Neste and Borealis. Neste and Veolia both own 40% of KPP, and Borealis owns 20%.
The steam generation capacity of the new power plant is 450 MW, and its electricity generation capacity is 30 MW. The total investment value of the power plant is about EUR 400 million. The plant, to be operated by Veolia, is scheduled for commissioning in 2018.
The environmental benefits from replacing the existing power plant are significant. The new power plant is being constructed in accordance with the latest environmental regulations, including the European Commission's Industrial Emissions Directive (IED), and is notably expected to reduce carbon dioxide emissions by approximately 20 percent compared to the current situation. Is also a good example of resource efficiency and circular economy since more than 80 percent of the fuels (e.g. asphaltene) that will be used in the new power plant are side streams of the refinery and petrochemical plant.
The Spanish-based Técnicas Reunidas is the main supplier for the construction project. The engineering company Neste Jacobs will implement connections and other infrastructure in the project to integrate the new power plant to Neste's refinery and Borealis' petrochemical plants. The project is funded by the European Investment Bank (EIB), the Nordic Investment Bank (NIB), and commercial banks including Bank of Tokyo- Mitsubishi UFJ (BTMU), ING, Nordea, Skandinaviska Enskilda Banken (SEB), and Unicredit.
Neste Corporation
Kaisa Lipponen
Director, Corporate Communications
More information:
Neste:
Jussi Hintikka, Head of Utility Management
tel. +358 (0)50 458 4799
Borealis:
Kerstin Meckler, Director Communications
tel. +43 (0)1 22 400 389, e-mail: kerstin.meckler@borealisgroup.com
Veolia:
Per Andersson, Communication Officer, VEOLIA NORDIC
tel. +46 (0)72 740 55 02, e-mail: per.andersson@veolia.com
Neste in brief
Neste is a pioneer in oil refining and renewable solutions. We provide our customers with premium-quality products for cleaner traffic and industrial products based on world-class research. We are the world's leading producer of renewable diesel, and our annual production capacity is more than 2 million tons. We also are the world's largest company providing renewable fuel from waste and residues. Our sustainable operations have received recognition in the Dow Jones Sustainability World Index and the Global 100 list of the world's most sustainable companies, among others. Our net sales for 2015 amounted to approximately EUR 11 billion, and our shares are listed on NASDAQ Helsinki. Cleaner traffic, energy and life are moved forward by about 5,000 professionals. More information: neste.com/en
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