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AGA to build a new hydrogen production unit at Neste Oil's Porvoo refinery


April 28, 2014 - London

Neste Oil Corporation
Press release
28 April 2014 at 9 a.m. (EET)

AGA to build a new hydrogen production unit at Neste Oil's Porvoo refinery

Neste Oil and AGA, part of the Linde Group, have signed a long-term hydrogen supply agreement covering Neste Oil's Porvoo refinery, under which AGA will invest to build a new hydrogen production unit at the refinery. AGA will be responsible for construction and Neste Oil will build the links needed to connect the unit to the refinery. The project represents an investment of around EUR 100 million.

Neste Oil already has two hydrogen production units at its Porvoo refinery and the plan is to replace output from the older of these with hydrogen from the new, more efficient unit to be built by AGA. The new unit is expected to be completed in 2016 and will be operated by AGA.

"Working together with AGA like this is an excellent way to increase the efficiency of our hydrogen production," says Neste Oil's President & CEO, Matti Lievonen. "The operating costs of the old hydrogen unit are high, and maintaining it would have called for some major investments over the coming years. Thanks to AGA's new unit, we will be able to modernize and grow the hydrogen supply capacity we have access to and thereby increase the reliability and flexibility of the refinery as a whole. The arrangement will also free up valuable capital to develop core business related to Neste Oil's cleaner traffic strategy."

"We have looked at how the prices of the inputs needed for a plant like this have been developing and have selected a very efficient plant concept," says AGA Sales Director, Johanna Ylikoski. "The unit will provide a competitive source of hydrogen for Neste Oil and it will also reduce local CO2 emissions. The plant represents a major industrial investment for Finland nationally speaking."

"This is major project for us and will strengthen our position as a hydrogen supplier to the refining industry," says Aldo Belloni of Linde's Executive Board. "The project will draw once again on the hydrogen production technology of Linde Engineering and the operating experience of our Gases Division."

When the new plant built and operated by AGA is operational, it will supply around 20% of the hydrogen needed by Neste Oil at Porvoo. The remainder will continue to be largely sourced in-house. Hydrogen is produced from natural gas using a steam reforming process and is used in numerous processes and products at Porvoo, to produce sulfur-free diesel products and premium-quality base oil, for example.

Construction work on the project will start immediately and the plan is to bring the new unit on stream in summer 2016. Construction could cause occasional noise disturbance and increased traffic in the area surrounding the Porvoo refinery.

Neste Oil Corporation

Kaisa Lipponen
Director, Corporate Communications

Further information:
Neste Oil Corporation: Ilkka Poranen, Senior Vice President, Production and Logistics, tel. +358 (0)10 458 5070
Oy AGA Ab: Johanna Ylikoski, Sales Director, tel. +358 10 242 0385

Photos for media usage can be found at: http://brandbank.nesteoil.com/?cart=1128-igkihcjmij&l=EN

Neste Oil in brief

Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company produces a comprehensive range of major petroleum products and is the world's leading supplier of renewable diesel. Neste Oil had net sales of EUR 17.5 billion in 2013 and employs around 5,000 people, and is listed on NASDAQ OMX Helsinki.

Neste Oil is included in the Dow Jones Sustainability World Index and the Ethibel Pioneer Investment Register, and has featured in The Global 100 list of the world's most sustainable corporations for many years. Forest Footprint Disclosure (FFD) has ranked Neste Oil as one of the best performers in the oil & gas sector. Further information: www.nesteoil.com

Oy AGA Ab

Oy AGA Ab is part of the Linde Group, one of the world's leading industrial gases and technology companies. The Linde Group has approx. 63,500 employees in more than 100 countries worldwide. Oy AGA Ab in Finland is part of Linde's Northern European Unit, which covers the Nordic region together with the Baltic countries. AGA is the leading supplier of industrial gases in its sector and its comprehensive range of solutions includes gases, gas equipment, process expertise, and training and maintenance services. Gas technology developed by AGA helps customers improve their profitability, safety, and quality, as well as protect the environment.




This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Neste Oil Oyj via Globenewswire

HUG#1780298

GlobeNewswire

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