Vattenfall is to supply Finnish fuel producer Neste with electricity from its Nordic hydropower plants under a 800 gigawatt-hour a year power purchase agreement (PPA).
The new hydropower agreement will enable Neste to achieve its 100% renewable electricity target in Finland as early as 2022.
Neste is the world’s largest producer of renewable diesel and sustainable aviation fuel refined from waste and residues.
It has been a Vattenfall customer since 2019 and the new agreement is valid until 2024.
Vattenfall Nordics head of customers and solutions Branislav Slavic said: "The collaboration with Neste is an important step towards reduced emissions.
"Neste has high environmental ambitions and I am delighted with the continued trust and cooperation in our work to enable a fossil free living within one generation.
"Not only by delivering fossil free energy but also as energy experts managing Neste’s electricity portfolio."
Neste is committed to combatting climate change and reducing climate emissions with three climate commitments.
Reduction of greenhouse gas emissions from its own production, the emission intensity of the use of products sold by Neste and the reduction of customers’ emissions with Neste’s renewable and circular solutions.
Neste executive vice president for oil products Markku Korvenranta said: "We aim to make Neste's Porvoo refinery the most sustainable refinery in Europe by 2030 and reach carbon neutral production by 2035.
"We will achieve these ambitious targets by reducing greenhouse gas emissions from production and using renewable electricity, for instance.
"Thanks to the hydropower agreement we have signed with Vattenfall, we will reach an important milestone at the beginning of 2022, as our Porvoo refinery and operations in Naantali will use 100% renewable electricity.
"We will continue to work actively to achieve carbon neutrality."