The Linde Group has signed an agreement to build new hydrogen production unit for Finnish refining company Neste Oil.
Under the long-term on-site hydrogen supply agreement, Linde will build a new hydrogen production unit for Neste Oil’s Porvoo refinery near Helsinki, Finland for a total investment value of around €100m.
Neste Oil president and CEO Matti Lievonen said that Neste Oil and AGA cooperation will provide a new solution to improve Neste Oil’s hydrogen production efficiency.
Linde’s Engineering division will construct the turn-key plant where as Linde’s North European subsidiary AGA will be responsible for the new unit operation which is scheduled to come on stream in 2016, as part of the agreement.
Currently, Neste Oil’s Porvoo refinery comprises two hydrogen production units, of which the older is due for replacement by a more efficient unit.
"The operating costs for the old hydrogen production unit are high, and maintaining it would require significant investments in the coming years," Lievonen added.
"With this new plant the available hydrogen production capacity of Neste Oil will be renewed and increased, which will improve the reliability and flexibility of the refinery."
Linde Region Europe North head Jan Bäckvall said Linde has have selected a plant concept with very high efficiency and heat integration while taking into consideration the increasing feedstock cost in the region.
"This will not only be a cost-competitive source of hydrogen for Neste Oil but will also reduce local CO2 emissions," Bäckvall added.