Neste, an oil refining and marketing company, has commenced the process of converting its crude oil refinery in Porvoo, Finland, into a renewable and circular solutions refining hub.

The move follows the completion of a strategic study on the transformation that was launched last year.

The planned transformation of Porvoo refinery will be carried out in phases, and will involve multiple separate investment decisions.

The project is expected to be completed in the mid-2030s.

Once the transformation is complete, the facility will produce around 3 million tonnes of renewable and circular products, such as renewable diesel, sustainable aviation fuel, and renewable and circular feedstock for the polymers and chemicals industry.

Additionally, the project will also support Neste in achieving its climate commitments.

Overall, the transformation will entail an investment of around €2.5bn.

Neste president and CEO Matti Lehmus said: “The COP28 declaration is a strong signal to all of us, and we want to be in the forefront of accelerating the green transition with our renewable and circular solutions.

“The long term transformation of the Porvoo refinery is a key element in our renewables growth strategy, completing Neste’s journey to a 100% renewable and circular solutions provider when finalised. This will further strengthen our position in serving the future needs of our customers.”

The company aims to make Porvoo oil refinery the most sustainable refinery in Europe by 2030.

It also aims to achieve carbon-neutral production by 2035 and reduce the carbon emission intensity of sold products by 50% by 2040.

Last year, Neste’s revenue stood at €25.7bn.