Neste to expand Porvoo refinery infrastructure for processing liquefied recycled raw materials

Finland-based chemical recycler Neste confirmed it will expand the logistics infrastructure of its Porvoo refinery to be able to process liquefied recycled raw materials, including plastic waste and rubber tires, it said Aug. 20.

The company said in the statement this expansion will include the installation of a specialized loading arm with a heating system and transportation pipelines for direct storage from the harbor. A vapor recovery unit will also be built for emissions control.

"The new logistics infrastructure ... puts us in a good position to process larger and continuous volumes of liquefied recycled raw materials," Jori Sahlsten, senior vice president of Operations at the Porvoo Refinery, said. "This will be needed when we start using the new upgrading unit, which is able to process 150,000 tons of liquefied waste plastic per year."

The initiative will help Neste achieve its goal of transforming the Porvoo refinery into a hub for renewable and circular products, it said, adding that the upgrades are happening as part of Project PULSE -- a Eur135 million EU initiative that aims to recycle 400,000 metric tons per year of plastic waste.

Neste expects the new infrastructure to be completed this year, allowing for use when the company finalizes the construction of its liquified waste plastic upgrading facility in Porvoo in 2025. The material produced at this unit will be utilized as feedstock for plastics and chemicals.

Long-term potential of chemical recycling

The expansion speaks to the growing appetite for and perception of long-term viability of chemical recycling within the European petrochemicals industry, reflecting the ramp-up of projects targeting the sector across the continent.

In an interview with S&P Global Commodity Insights during this year's Plastics Recyclers Europe show, Neste said it had "proprietary technologies" for the refining and upgrading of liquefied plastic waste, which is produced from chemical recycling methods such as pyrolysis or hydrothermal treatment.

The company said the European downstream market had long-term potential and appetite for chemical recycling, believing it to be a complementary process to other sustainability efforts such as mechanical recycling.

While the chemical industry has been weak across the year due to macroeconomic conditions and continues to see limited commoditization due to scalability and affordability concerns, increased legislative attention for sustainable materials could have contributed to hopes for their long-term viability, according to Neste.

Looking forward, Neste reiterated the need for a "supportive regulatory environment such as how chemical recycling is recognized as recycling."

"Incentives are welcome, but you also need clarity on the status and role of different processes and materials," Outi Teräs, technology commercialization lead for Chemical Recycling at Neste, said.