News & Views

Hannes Snellman Counsel to Veolia in a JV with Neste and Borealis

16 March 2016

Neste, Veolia and Borealis completed on 15 March 2016 a transaction under which the parties 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 the current power plant to the joint venture company.

KPP will build 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 around 400 million euros, of which an estimated 350 million euros for the new power plant.

Veolia Services Suomi Oy, a subsidiary of Veolia Environnement S.A., 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 350 million euros.

Hannes Snellman acted as legal counsel to Veolia. Our team comprised Tapio Teräkivi, Tuire Kuronen, Maria Lassenius, Kaisa Fahllund, Heikki Vesikansa, Kimmo HeikkinenVictor Fagerlund, Heikki Majamaa, Katja Heikkinen, Klaus Metsä-Simola, Elina Hautakangas, Johanna Haltia-Tapio, Karoliina Koto, Janne Joukas, Johan Hägerström and Anna-Maria Tamminen.