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 EUR 400 million, of which an estimated EUR 350 million 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 EUR 350 million.

"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.

For further information please contact:

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

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

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