A joint project between Neste, Veolia and Borealis has been recently confirmed in the form to arrange power plant operations and build a new power plant in Kilpilahti, Porvoo, Finland. The banks funding the project have given their final commitment to the plan. In the arrangement, Neste will transfer its existing power plant to Kilpilahti Power Plant Limited (KPP). The company will build a new combined heat and power plant in Porvoo to match the needs of Neste and Borealis. Neste and Veolia both own 40% of KPP, and Borealis owns 20%.
The steam generation capacity of the new power plant is 450 MW, and its electricity generation capacity is 30 MW. The total investment value of the power plant is about EUR 400M. The plant, to be operated by Veolia, is scheduled for commissioning in 2018.
The new power plant is being constructed in accordance with the latest environmental regulations, including the European Commission’s Industrial Emissions Directive (IED), and is notably expected to reduce carbon dioxide emissions by approximately 20 percent compared to the current situation. The Spanish-based Técnicas Reunidas is the main supplier for the construction project. The engineering company Neste Jacobs will implement connections and other infrastructure in the project to integrate the new power plant to Neste’s refinery and Borealis’ petrochemical plants.
