Neste and Fortum Extend Energy Partnership with New Bilateral Agreement

Neste and Fortum's extension of their energy partnership through a new bilateral agreement for 2026-2030 signifies a continued commitment to securing stable electricity supply for Neste's Finnish operations. Under the agreement, Fortum will supply approximately 2.6 TWh of electricity from its Nordic production portfolio to Neste's refinery in Porvoo. This long-term power purchase agreement (PPA) underscores the importance of strategic alliances in ensuring energy availability for energy-intensive industrial processes. The deal highlights the growing trend of corporations seeking long-term energy security through direct agreements with energy producers. While the financial details remain undisclosed, the scale of the electricity supply (2.6 TWh) and the involvement of two major players, Neste and Fortum, make this a notable agreement in the Nordic energy market. It also supports Fortum's strategic objective of advancing the electrification of industry and society, aligning with broader sustainability goals. The energy sector in Finland, and the broader Nordic region, is characterized by a growing emphasis on renewable energy sources and electrification. Long-term PPAs are becoming increasingly common as companies seek to hedge against volatile energy prices and meet their sustainability targets. This agreement between Neste and Fortum reflects this trend and demonstrates the value of established partnerships in navigating the evolving energy landscape.