The European renewable energy group Energiequelle is reserving a site for a new hydrogen project to produce hydrogen in Oulu, northern Finland. When all three stages of the project are fully completed, the plant could produce hydrogen by electrolysis with a capacity of over 500 megawatt (MW). The hydrogen plant would be commissioned in three phases between 2028 and 2033.
The first phase of the project would involve the construction of a hydrogen production plant of a maximum of 5 MW and a hydrogen refuelling station for buses and other heavy-duty vehicles. In the next phase, the capacity of the hydrogen production plant would be increased to 10–50 MW and hydrogen exports via the planned hydrogen pipeline and the port of Oulu could be an option, if the needed infrastructure is available. In the third phase, production would be further increased to an additional capacity of 100–500 MW. The schedule and full size of the project are highly dependent on the market situation and the infrastructure available in the selected new greenfield site.
“If the right market conditions are met, we expect the first phase to be ready by 2028. However, this is a major industrial project and investment, so the planning reservation we have now received is only one of the first steps towards making concrete investment decisions. In projects of this size, planning and studies are always carried out carefully,” comments Karl Schultheis, Head of New Business Development at Energiequelle Finland.
The Oulu Green Hydrogen Park project is Energiequelle’s first public hydrogen project in Finland, but the company has already gained experience in the European hydrogen market. In February, the group unveiled and opened the HY.City.Bremerhaven project in Germany, which was inaugurated by German Chancellor Olaf Scholz.
“In cooperation with other hydrogen players, Energiequelle is part of a hydrogen production facility and refueling station for buses and heavy-duty vehicles in the German city of Bremerhaven, which is very similar to the first phase of the project now planned for Oulu. We therefore have a strong belief that the project will proceed successfully,” says Michael Raschemann, the owner of the Energiequelle Group, adding that the realisation of the project will also depend on the investment environment and interest of off-takers.
Electricity in Finland is among the cheapest in Europe. The Oulu region is the largest producer of renewable electricity in Finland.
Several other hydrogen production and H2 derivative projects have already been initiated in the Oulu region. The Finnish state-owned gas transmission system operator Gasgrid Finland plans to establish a hydrogen transport infrastructure to connect Oulu’s hydrogen production with the rest of Finland and other European countries, including Germany. Other hydrogen production companies have also decided to invest in Oulu, attracted by the international port of Oulu, biogenic carbon dioxide sources and the European TEN‑T transport network. The University of Oulu is also a centre of hydrogen research, providing the city with both high-quality hydrogen expertise and a large pool of hydrogen specialists to meet the workforce needs of companies.
This land reservation is only a preliminary decision; a final investment decision will be made later.
About Oulu GH2 — Together towards green hydrogen business in Oulu and Northern Finland project aims to create a centralized hydrogen economy innovation ecosystem operating model for the region of Oulu and North Ostrobothnia. As part of the project, the hydrogen valley of the Bothnian Bay will be built by sharing information and bringing actors together, sharing news and best case studies, and effectively communicating them to different parts of the network by BusinessOulu. Oulu GH2 is funded by the Council of Oulu Region, which finances the project as part of the EU programme: A Rejuvenating and Skilled Finland 2021–2027, the EU’s regional and structural policy programme JTF fund.