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Linde to build a new hydrogen production unit for Neste Oil
Long-term on-site supply contract signed
Total investment
volume of around EUR 100 million
28 April 2014 - The technology company The Linde Group and Finnish
refining company Neste Oil have agreed on a long-term on-site hydrogen
supply contract. According to the agreement, Linde will build a new
hydrogen production unit for Neste Oil's Porvoo refinery near Helsinki,
Finland. The total investment value from Linde and Neste Oil amounts to
approximately EUR 100 million.
"This is an important project for
Linde as it strengthens our position as a supplier for hydrogen in the
refinery sector," said Professor Dr Aldo Belloni, member of the Executive
Board of Linde AG. "We will once again take advantage of combining the
hydrogen plant technology of our Engineering Division with the operating
experience of our Gases Division."
Neste Oil's Porvoo refinery
already has two hydrogen production units with the older one now due for
replacement by a more efficient unit. Linde's Engineering Division will
build the turn-key plant while Linde's North European subsidiary AGA will
be responsible for the operation of the new unit that is planned to come
on stream in 2016. Neste Oil will build the piping between the new plant
and the refinery.
"Cooperation with AGA is an excellent solution
for improving our hydrogen production efficiency," said Neste Oil's
President & CEO Matti Lievonen. "The operating costs for the old hydrogen
production unit are high and maintaining it would require significant
investments in the coming years. 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. At the
same time this solution will also release capital for us and enable us to
develop our core businesses related to Neste Oil's cleaner traffic
strategy."
"Taking into consideration the increasing feedstock cost
in the region, we have selected a plant concept with very high efficiency
and heat integration," said Jan Bäckvall, Head of region Europe North at
Linde. "This will not only be a cost-competitive source of hydrogen for
Neste Oil but will also reduce local CO2 emissions."
The hydrogen
will be produced from natural gas in a steam reforming process and it will
be used at the Porvoo refinery in many processes and products. Hydrogen is
used to produce, among other things, sulphur-free diesel fuel as well as
high-quality base oils.
The new contract is an expansion of the two
companies' existing supply relationship at the Porvoo site. Linde already
provides Neste Oil with air gases while obtaining in return off-gas CO2
for subsequent purification.
For more information:
Linde
Group: www.linde.com
Neste Oil:
www.nesteoil.com
Source: Uwe Wolfinger, Linde Group
Kaisa Lipponen, Neste Oil
April 28, 2014
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