Neste Oyj - Company Announcement

Power plant arrangement between Neste, Veolia and Borealis closed

Neste Corporation
Stock Exchange Release
16 March 2016 at 11 am. (EET)

Power plant arrangement between Neste, Veolia and Borealis closed

A joint project between Neste, Veolia and Borealis to arrange power plant
operations and build a new power plant in Kilpilahti, Porvoo, Finland has been
confirmed in the form it was announced in December 2015. 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 400 million. The plant, to be operated by Veolia, is
scheduled for commissioning in 2018.

The environmental benefits from replacing the existing power plant are
significant. 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. Is also
a good example of resource efficiency and circular economy since more than 80
percent of the fuels (e.g. asphaltene) that will be used in the new power plant
are side streams of the refinery and petrochemical plant.

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. The project is funded by 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.



Neste Corporation

Kaisa Lipponen
Director, Corporate Communications



More information:

Neste:
Jussi Hintikka, Head of Utility Management
tel. +358 (0)50 458 4799

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

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



Neste in brief

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






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