Majority state-owned oil company Neste has announced it will look to build a new renewable fuel facility in Rotterdam, saying it would be cheaper to build in the Dutch port city than it would in Porvoo.
"Based on the thorough studies and calculations, the overall cost of the investment is significantly lower in Rotterdam. Our decision relies on ensuring our future competitiveness and our renewables’ growth strategy execution," Neste CEO Peter Vanacker said in a statement.
Earlier in March, a report in business paper Kauppalehti suggested that establishing the new refinery in Rotterdam would be up to 500 million euros cheaper than in Porvoo.
Neste already has a biorefinery plant in Rotterdam, which means that locating the facility there will mean expanding existing infrastructure.
The decision goes against the wishes of Prime Minister Sanna Marin (SDP), who had previously said the government would "leave no stone unturned" in efforts to secure Neste's investment in Finland.
It also follows a decision to close the company's Naantali refinery in November last year, at the cost of 370 jobs.
Neste said it was preparing to make a final decision on the investment in late 2021 or early 2022.