AGA, part of the Linde Group, has secured a contract to build a hydrogen production unit at Neste Oil's Porvoo refinery in southern Finland.

Neste Oil will build the links required to connect the unit to the refinery and the project represents an investment of about €100m.

AGA will operate the new unit, which is anticipated to be completed in 2016.

Neste Oil, which already has two hydrogen production units at its Porvoo refinery, plans to replace output from the older of those with hydrogen from the new unit.

After completion, the new unit will supply about 20% of the hydrogen needed by Neste Oil at Porvoo.

Neste Oil president and CEO Matti Lievonen said the operating costs of the old hydrogen unit are high, and maintaining it would have required 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," Lievonen said.

Linde executive board member Aldo Belloni said, "This is major project for us and will strengthen our position as a hydrogen supplier to the refining industry."