Finland’s Neste scraps investment in renewable hydrogen in tough biofuel market

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Neste said it would need to re-evaluate any new investments due to the challenging market conditions, and added it was seeking alternative ways to utilize renewable hydrogen in Porvoo

Neste has withdrawn from an investment into renewable hydrogen production at its plant in Porvoo, Finland, the oil refiner and biofuel maker said after its third-quarter core earnings missed expectations on Thursday.

Neste’s decision seems like a typical re-evaluation of investment projects during harsh times rather than a sign of some bigger changes, Inderes analyst Petri Gostowski said. Its adjusted earnings before interest, tax, depreciation and amortization slumped 66 per cent to €293-million in the third quarter, missing analysts’ average estimate of €348-million in a company-provided poll.

Malinen, who officially took the top position last week, added that Neste had launched a group-wide potential analysis following “unsatisfactory” performance in recent quarters, including three outlook cuts so far this year.

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