Hy2gen to produce renewable ammonia in Finland, enters into partnership with Plug Power

By Geofrey Njovu on June 14, 2023

Hy2gen plans to build an 800 MW renewable ammonia facility near Kokkola, Finland. Renewable hydrogen feedstock for the project will be produced by Plug Power at a neighbouring site. 760,000 tonnes per year of renewable ammonia will be produced 9 km away from Kokkola harbour, allowing export and distribution by H2gen’s partners.

To construct the facility, 55 hectares of land have been secured from the Finnish City of Kokkola. This is one of Hy2gen’s multiple projects currently under development in the Baltic region. On the southwestern coast of Norway, Hy2gen is building a 600 tonnes per day renewable ammonia project in partnership with Trafigura and Copenhagen Infrastructure Partners.

The market for synthetic fuels is developing fast, particularly along the major sea routes and in the European core markets. Hy2gen is working hard to support this development towards renewable fuels and energy carriers through our existing presence and various projects in the region. Hy2gen already has a strong presence in the Nordic region as a partner in the Iverson eFuels-project in Norway, developing large-scale green ammonia production as fuel to the maritime fleet.

Cyril Dufau-Sansot, Co-founder and CEO of Hy2gen AG in Hy2gen’s official press release, 30 May 2023

Plug Power’s strategic move into Finland’s renewable hydrogen economy

Visualisation of one of Plug’s three planned electrolysis plants in Finland. Among other end uses, the facility in Kokkola will provide renewable hydrogen feedstock for Hy2gen’s neighboring ammonia production plant, which will have a capacity of 760,000 tonnes per year. Source: Plug Power.
Click to learn more. Visualisation of one of Plug’s three planned electrolysis plants in Finland. Among other end uses, the facility in Kokkola will provide renewable hydrogen feedstock for Hy2gen’s neighboring ammonia production plant, which will have a capacity of 760,000 tonnes per year. Source: Plug Power.

Also in Finland, Plug Power plans to develop three renewable hydrogen production plants with a total production capacity of 850 tonnes per day, featuring 2.2 GW of electrolyser capacity. The plants will be strategically located in Kokkola, Kristinestad and Porvoo to utilise Finland’s clean energy sources such as nuclear, wind and hydro power. FID on the three plants is expected by 2025-26.

The Kokkola plant will generate 85 tonnes per day of liquid renewable hydrogen using 1 GW of Plug’s PEM electrolysers, feeding ammonia production at Hy2gen’s neighboring facility mentioned above. The liquid hydrogen will also be used locally and exported to western Europe from the Port of Kokkola. Plug and Hy2gen will also partner on the production of other hydrogen derivatives at different projects in the region.

The hydrogen produced from 1 GW electrolyser capacity in Kristinestad will be used to produce 2 million tonnes per year of steel in partnership with green steel company GravitHy. In Porvoo, 100 tonnes per day of hydrogen will be produced by 2030. The hydrogen will be used for the local mobility sector and exported to Western Europe.

Plug also has an MoU in place with Finland’s electricity transmission system operator Fingrid and natural gas transmission system operator Gasgrid. The parties will work together to ensure the three projects are properly connected to Finland’s electric grid and utilise appropriate capacities, and for the development of hydrogen infrastructure. Land commitment has also been secured from three Finnish municipalities.

We have consistently developed our infrastructure with a focus on attracting industrial investments. Kokkola is committed to support the installation of Plug’s project in Kokkola South, and we are delighted about the estimated several hundreds of industrial jobs that will be created with Plug’s establishment.

Jonne Sandberg, the Development Director of Kokkola in Plug’s official press release, 30 May 2023

In Kristinestad, we have been working for a long time on developing green energy through wind power, solar power, and hydrogen. We are a European pioneer in the green transition. We are doing everything in our power to ensure the success of the project in Kristinestad. It will have positive impacts on the entire region’s economy.

Mila Segervall, the Mayor of Kristinestad in Plug’s official press release, 30 May 2023

A significant clean tech hub is developing in Porvoo. We are pleased to welcome international operators to the Kilpilahti area, which is a key location for the green transition in Finland and Northern Europe. The discussion with Plug has been open and smooth, which is important for the success of the process.

Jukka-Pekka Ujula, the Mayor of Porvoo in Plug’s official press release, 30 May 2023

A 2021 report by the EU indicated a growing decarbonised fraction of Finland’s total energy mix, with renewable energy and nuclear accounting for 66% of total generation. The country aims for near zero-emissions electricity and heat generation by the end of the 2030s.

Further, the scale of Plug’s Finnish projects would account for ~5% of the RePower EU plan, which targets 10 million tonnes of internally produced renewable hydrogen by 2030. The three projects are expected to create around 4, 000 direct and indirect jobs, boosting the Finnish economy.

Flexens’ renewable ammonia plant in Kokkola

When it was announced in December 2022, the Flexens – KIP Infra 300 MW renewable ammonia project was the largest in scale in the country. Hy2gen and Plug Power projects are the latest addition to Finland’s portfolio as the country aims to increase renewable energy’s share of its energy mix Source: Flexens.
Click to learn more. When it was announced in December 2022, the Flexens – KIP Infra 300 MW renewable ammonia project was the largest in scale in the country. Hy2gen and Plug Power projects are the latest addition to Finland’s portfolio as the country aims to increase renewable energy’s share of its energy mix Source: Flexens.

Also in Kokkola, Flexens and KIP Infra plan to develop a hydrogen facility with production capacity of approximately 300 MW in the Kokkola Industrial Park area.

Set to become operational at the end of 2027, the Flexens – KIP Infra project will produce mainly renewable hydrogen and ammonia. To improve the project’s energy efficiency, energy company Kokkolan Energia is contemplating using the waste heat from the hydrogen plant for its district heating production.

Other parties in this project are Gasgrid Finland and Sweden’s Nordion Energi who, as part of the Nordic Hydrogen Route Bothnian Bay project, are developing a 1,000 km hydrogen transmission network around the Bothnian Bay and Bothnian Gulf, and an open hydrogen market by 2030.

BotH2nia, ‘the Hydrogen Bay of the North’, being established around the Gulf and Bay of Bothnia, is predicted to be able to meet a significant part of all of Europe’s energy needs in the form of hydrogen. Furthermore, the Kokkola plant’s 300 MW would fulfil a third of the domestic capacity target of 1,000 MW as stated in Finland’s climate and energy strategy.

Berndt Schalin, CEO, Flexens Oy Ab in Flexens’ official press release, 15 November 2022

The project implementation would strengthen the energy networks in Kokkola’s large industrial area, such as the electricity and heating networks. This enables a significant waste heat recovery and brings us both employment opportunities and turnover. The project also supports the goals of our low-carbon strategy by, for example, reducing district heating and logistics emissions and enabling hydrogen and hydrogen-based fuels in the area.

Mikko Rintamäki, CEO, Kokkolan Energia Oy in Flexens’ official press release, 15 November 2022