Neste contributes to the EU green hydrogen value chain – European Commission grants IPCEI status for Porvoo refinery hydrogen projects
Neste Corporation, Press Release, 15 July 2022 at 4.30 p.m. (EET)
Neste has become the first Finnish company to be granted IPCEI (Important Project of Common European Interest) status by the European Commission, which enables national public funding for Neste's clean hydrogen projects at Porvoo refinery. The Commission's approval is part of the EU's first wave of IPCEIs on hydrogen, which aims to develop and accelerate the production and use of clean hydrogen in Europe.
On 15 July 2022, the European Commission approved 35 companies in 15 EU Member states for IPCEI status for public funding of clean hydrogen research and innovation projects. Coordinated in Finland by the Ministry of Economic Affairs and Employment and Business Finland, Neste was the first Finnish company to be selected in the EU application. The final funding decisions in Finland will be made by Business Finland.
EU IPCEIs promote the EU's strategic objectives and the common interests of Europeans by supporting innovation projects in different Member States. IPCEIs are subject to a separate set of state aid rules, which allow for additional flexibility in the way the state can subsidize companies.
Neste projects approved by the Commission develop solutions for the production and utilization of clean hydrogen in Neste's refinery processes.
"The hydrogen projects at Porvoo refinery will become an integral part of the European value chain for the production and use of clean hydrogen. The production of clean hydrogen will play a key role in developing responsible, commercially viable solutions for low-carbon traffic and industry," says Lars Peter Lindfors, Senior Vice President, Innovation at Neste.
The EU target is to cut greenhouse gas emissions by at least 55% by 2030 compared to 1990 emissions. To achieve this target, significant amounts of emission-free, reliable, and cost competitive energy are needed. The joint hydrogen IPCEI projects aim to produce 10 million tonnes of clean hydrogen in the EU by 2030.
IPCEI status also contributes significantly to Finland's climate goals and is an important part of Neste’s commitment to reaching carbon neutral production by 2035.
"Hydrogen economy requires close collaboration with partnerships across the value chain to make it a reality. IPCEIs are a great supporter of such collaboration. We are very pleased that with the status granted by the European Commission, Neste's hydrogen projects are recognized as flagship projects of the hydrogen economy across Europe. The decision also supports our ambition to make Neste's Porvoo refinery the most sustainable refinery in Europe by 2030," says Outi Ervasti, Vice President, Renewable Hydrogen, Neste.
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Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of sustainable aviation fuel and renewable diesel and developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce their greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. Our ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. We are introducing renewable and recycled raw materials such as liquefied waste plastic as refinery raw materials. We have committed to reaching carbon-neutral production by 2035, and we will reduce the carbon emission intensity of sold products by 50% by 2040. We also have set high standards for biodiversity, human rights and supply chain. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2021, Neste's revenue stood at EUR 15.1 billion. Read more: neste.com