INVESTMENT
Neste's EUR 111M Porvoo plant can process 150,000 tonnes of unrecyclable waste plastic a year, a milestone for European chemical recycling
23 Mar 2026

Neste has opened what it describes as the world's largest facility for upgrading liquefied waste plastic, commissioning the EUR 111m plant at its Porvoo refinery in Finland in March 2026. The installation, capable of processing up to 150,000 tonnes of mixed and contaminated plastic waste per year, represents a significant expansion of a technology that has long struggled to move beyond pilot scale.
The plant targets materials that conventional mechanical recycling cannot handle: mixed packaging, contaminated films, and multi-layer plastics that would otherwise be incinerated or sent to landfill. Neste has been processing liquefied waste plastic since 2020, providing six years of operational data ahead of the Porvoo scale-up. The company says its RE product line, using a mass balance approach, delivers reductions of more than 70 per cent in virgin fossil resource consumption and more than 35 per cent in greenhouse gas emissions compared with conventional production and incineration.
Construction began in 2023 and concluded at end-2025, with output ramping through 2026. The Porvoo site integrates directly into Neste's existing refinery infrastructure, reducing deployment costs compared with standalone plants. The company also licenses its liquefaction technology through partners Alterra and Technip Energies, opening a path to similar capacity elsewhere in Europe.
The timing coincides with tightening rules under the EU's Packaging and Packaging Waste Regulation, which is increasing pressure on brand owners to source certified circular materials. Chemical recycling, proponents argue, can meet demand that mechanical processes alone cannot satisfy.
A regulatory obstacle, however, complicates the commercial picture. Under current EU rules, refinery co-processing of liquefied waste plastic does not count toward official recycled content targets. Neste is pressing Brussels to revise those calculation rules, arguing that the present framework could undermine investment in precisely the infrastructure the bloc's plastics transition requires. Whether European regulators move quickly enough to match the pace of industrial deployment remains an open question.
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