16 march 2016

Veolia reinforces its position in the Nordic market with the financial close of Kilpilahti Power Plant

Pressrelease 20160316, 10:00 (CET)

The EUR 400 million project, a partnership between Veolia, Neste and Borealis for the construction and operation of a new combined heat and power plant in Porvoo, Finland has reached successful financial close. A major milestone for Veolia in the Nordic energy services market.

The project has now been confirmed in the form it was announced on 15 December 2015. Veolia, Neste and Borealis have created a joint venture company to purchase the existing power plant from Neste and to build a new combined heat and power plant that will supply Neste’s refinery and Borealis’ petrochemical plant in Porvoo, Finland with steam and other utilities. The total investment value is around EUR 400 million and the project is funded by the three partners and a group of financial institutions composed of the European Investment Bank (EIB), the Nordic Investment Bank (NIB), and commercial banks including Bank of Tokyo- Mitsubishi UFJ (BTMU), ING, Nordea, Skandinaviska Enskilda Banken (SEB), and Unicredit.  

As part of the agreement, Veolia Services Suomi Oy, a subsidiary of Veolia Nordic AB, has taken over the operating staff of the existing power plant from Neste and will operate and maintain the existing and new power plants through a 20-years energy services agreement with an estimated value of 350 million euros. 

- The partnership with Neste and Borealis is a testimony of what we can do for the industry in the Nordic countries. It is also a good example of resource optimization since more than 80 percent of the fuels that will be used in the new power plant are side streams from the customers’ own processes. Finally, it is an example of Veolia’s strategy of “co-construction” and a proof of our ability to develop favorable financing solutions for the realization of projects of this size, says Mikael Jansson, CEO of Veolia Nordic.

The environmental benefits from replacing the existing power plant are significant. The new CHP 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 20 percent compared to the current situation.

- We are very proud of having been entrusted with the responsibility for the energy supply to Neste’s and Borealis’ operations in Porvoo; it is a milestone for Veolia in the Nordic energy services market. I also expect this merely to be the starting point, and that Veolia will be able to develop our other services to downstream oil & gas and petrochemical industries in Kilpilahti in the years to come, says Mikael Jansson.

Media contact Veolia
Per Andersson, Communication Officer, VEOLIA NORDIC, tel. +46 (0)72 740 55 02,
[email protected]

Neste Corporation
Kaisa Lipponen, Director, Corporate Communications
Further information: Jussi Hintikka, Head of Utility Management, Neste, tel. +358 50 458 4799

Media contact Borealis
Kerstin Meckler, Director Communications, tel. +43 (0)1 22 400 389 (Vienna,
Austria), [email protected]

Veolia group is the global leader in optimized resource management. With over 174 000 employees worldwide, the Group designs and provides water, waste and energy management solutions that contribute to the sustainable development of communities and industries. Through its three complementary business activities, Veolia helps to develop access to resources, preserve available resources, and to replenish them. In 2015, the Veolia group supplied 100 million people with drinking water and 63 million people with wastewater service, produced 63 million megawatt hours of energy and converted 42.9 million metric tons of waste into new materials and energy. Veolia Environnement (listed on Paris Euronext: VIE) recorded consolidated revenue of €25 billion in 2015. www.veolia.com

Neste is a pioneer in oil refining and renewable solutions. We provide our customers with premium-quality products for cleaner traffic and industrial products based on world-class research. We are the world's leading producer of renewable diesel, and our annual production capacity is more than 2 million tons. We also are the world's largest company providing renewable fuel from waste and residues. Our sustainable operations have received recognition in the Dow Jones Sustainability World Index and the Global 100 list of the world's most sustainable companies, among others. Our net sales for 2015 amounted to approximately EUR 11 billion, and our shares are listed on NASDAQ Helsinki. Cleaner traffic, energy and life are moved forward by about 5,000 professionals. More information: neste.com/en

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, the company currently has around 6,500 employees and operates in over 120 countries. Borealis generated EUR 7.7 billion in sales revenue and a net profit of EUR 988 million in 2015. The International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the company, with the remaining 36% belonging to OMV, an international, integrated oil and gas company based in Vienna. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).