Neste Oyj - Company Announcement

Neste, Veolia and Borealis to build a new combined heat and power plant in Porvoo, Finland

Neste Corporation
Stock Exchange Release
15 December 2015 at 02.00 pm (EET)

Neste, Veolia and Borealis to build a new combined heat and power plant in
Porvoo, Finland

Neste, Veolia and Borealis have agreed to create a joint venture company to
build a new combined heat and power plant ("power plant") and produce and supply
steam and other utilities to Neste's refinery and Borealis' petrochemical plant
in Porvoo, Finland. The company, Kilpilahti Power Plant Limited ("KPP") will be
owned 40% each by Neste and Veolia and 20% by Borealis. Neste will contribute
its required equity share in KPP by transferring the current power plant to the
joint venture company. The arrangement is subject to financing deals which are
expected to take place during the first quarter of 2016.

"We have combined forces to build this modern power plant, and from 2018 onwards
its customers will have a more secure, efficient and clearly cleaner power
source," says Matti Lehmus, EVP Oil Products at Neste Corporation.

KPP will build four new steam and power generation assets with an installed
capacity of 450 megawatt thermal and 30 megawatt electrical running on side
streams from the refineries as well as natural gas, with asphaltene being the
main fuel. The total investment is expected to be around 400 million euros, of
which an estimated 350 million euros for the new power plant. The resulting new
power plant will comply with the latest environmental regulations, including the
European Commission's Industrial Emissions Directive (IED), and is expected to
be in operation during 2018.

"This joint venture will deliver safe and reliable energy supplies, and support
the sustainable development of our Porvoo location," says Markku Korvenranta,
Borealis Executive Vice President Base Chemicals. "The new power plant will
secure our long-term reliable energy supply for our operations in Porvoo on a
competitive basis."

Veolia Services Suomi Oy, a subsidiary of Veolia Nordic AB, will take over the
operating staff of the existing power plant from Neste and enter into a 20-year
operations and maintenance contract with KPP for an estimated value of 350
million euros.

"The cooperation with Neste and Borealis constitutes an important milestone for
Veolia in the Finnish and Nordic energy services markets and demonstrates the
attractiveness of our business model and technical and operational know-how",
says Veolia's CEO for the Nordic countries, Mikael Jansson. "Neste and Borealis
are leading companies within their respective industries and we are proud that
they have entrusted us as their partner for the energy management for their
operations in Porvoo."

Neste first announced its plan to replace the current power plant in May 2013.
Borealis and Veolia both first announced this planned joint venture in October
2014.

Neste Corporation

Kaisa Lipponen
Director, Corporate Communications

Further information:
Jussi Hintikka, Head of Utility Management, Neste, tel. +358 50 458 4799

Media contact Veolia:
Per Andersson, Communication Officer, VEOLIA NORDIC, tel. +46 (0)72 740 55 02
e-mail: per.andersson@veolia.com

Media contact Borealis
Kerstin Meckler, Director Communications, tel. +43 (0)1 22 400 389 (Vienna,
Austria)
e-mail: kerstin.meckler@borealisgroup.com



Neste in brief
Neste is a forerunner in oil refining and renewable solutions. We offer our
customers cleaner traffic solutions and industrial products based on cutting-
edge research. We are the leading producer of renewable diesel in the world,
with an annual production volume of more than 2 million tons. We are also the
world's largest producer of renewable fuels from waste and residues. Our
sustainable practices have received recognition in the Dow Jones Sustainability
World Index and the Global 100 list of the world's most sustainable companies.
In 2014, our revenue amounted to EUR 15 billion. Neste shares are listed on
NASDAQ Helsinki. Cleaner traffic, energy and life are moved forward by 5,000
professionals. Learn more at neste.com.

Veolia in brief
Veolia group is the global leader in optimized resource management. With over
179,000 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 2014, the Veolia group supplied 96 million people with
drinking water and 60 million people with wastewater service, produced 52
million megawatt hours of energy and converted 31 million metric tons of waste
into new materials and energy. Veolia Environnement (listed on Paris Euronext:
VIE) recorded consolidated revenue of €24.4 billion* in 2014. www.veolia.com
(*) 2014 pro-forma figures, including Dalkia International (100%) and excluding
Dalkia France.

Borealis in brief
Borealis is a leading provider of innovative solutions in the fields of
polyolefins, base chemicals and fertilizers. With headquarters in Vienna,
Austria, Borealis currently employs around 6,500 and operates in over 120
countries. It generated EUR 8.3 billion in sales revenue in 2014. The
International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the
company, with the remaining 36% owned by OMV, an integrated, international oil
and gas company. 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).



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