Excess heat from Kilpilahti plants could cover one quarter of district heating of the Helsinki region

Neste Corporation Press Release June 18, 2019  at 12.00 (EET)

The production plants of Neste and Borealis Polymers located in Kilpilahti, Porvoo, produce a significant amount of low-temperature excess heat, but no solution exists to utilize this energy. On the basis of a recently completed preliminary study by Neste, Borealis and energy companies in the Helsinki Metropolitan area, the use of excess heat in the production of district heating is technically feasible. Excess heat from the Kilpilahti plants could cover approximately one quarter of the district heating volume required in the Helsinki region. Even more excess heat would be available, but its use is limited by the decreased need for heat in the summer season. In addition to the Helsinki region, some of the studied options allow excess heat also to be used, for example, in Porvoo and Sipoo.

Three options were examined in the preliminary study. In the first option, district heating would be produced from excess heat in Kilpilahti using heat pumps and then transferred to the Helsinki region via a district heating pipeline. In the second option, low-temperature excess heat would be transferred from Kilpilahti to the Helsinki region via a subterranean tunnel and district heating would then be produced in the Helsinki region using heat pumps. In the third option, district heating would be produced from excess heat in Kilpilahti using heat pumps and then transferred to the Helsinki region via a district heating pipeline located inside a subterranean tunnel. The third option would enable the use of the tunnel for other purposes as well.

The preliminary study showed that the investments required, the price of the electricity consumed by the heat pumps and the level of electricity tax will all have a significant impact on the costs of heat production and the profitability of the project. Currently, heat pumps that use excess heat and are connected to the district heating system are in the highest electricity tax category, which significantly increases the price of district heating generated using excess heat. If implemented, the project would require a significant amount of construction work and, according to the preliminary study, the delivery of heat could be started no earlier than in 2025.

Next, the parties will assess their ability to continue the project to the next phase. Decisions on the next steps will be taken by the end of this year.

The preliminary study was funded by Neste Corporation, Borealis Polymers Oy, Fortum Power and Heat Oy, Helen Oy, Vantaan Energia Oy, Porvoon Energia Oy – Borgå Energi Ab and Keravan Energia Oy. It was conducted by Neste Engineering Solutions Oy in cooperation with Gaia Consulting Oy.

Neste Corporation

Kaisa Lipponen

Director, Corporate Communications

Further information:

Borealis Polymers Oy: Jari Salonen, Energy Manager, tel. +358 50 379 4452

Fortum Oyj: Timo Piispa, Head of Heating and Cooling, tel. 358 50 453 2758

Helen Oy: Harri Mattila, Senior Vice President, tel. +358 50 559 2913

Keravan Energia Oy: Sami Kotimäki, Production Director, +358 40 743 3706

Neste Corporation: Jussi Hintikka, Vice President, Energy, tel. +358 50 458 4799

Porvoon Energia Oy: Jukka Rouhiainen, Development Director, tel. +358 40 334 6638

Vantaan Energia Oy: Kalle Patomeri, Production Manager, +358 50 529 4158

Borealis in brief

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With its head office in Vienna, Austria, the company currently has more than 6,800 employees and operates in over 120 countries. Borealis generated EUR 8.3 billion in sales revenue and a net profit of EUR 906 million in 2018. Mubadala, through its holding company, owns 64% of the company, with the remaining 36% belonging to Austria-based OMV, an integrated, international oil and gas company. Borealis provides services and products to customers globally, in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC) and with Bayport Polymers, a joint venture with Total and NOVA Chemicals in Texas, USA. www.borealisgroup.com

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2018, Neste's revenue stood at EUR 14.9 billion. In 2019, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Read more: neste.com

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