Plans Position Oulu as the Baltic Sea Region’s Largest Synthetic Fuel Production Hub
The City of Oulu’s Community Board will discuss granting a planning reservation for a new hydrogen plant at Oulu Port in Vihreäsaari during its meeting on November 25, 2025. The German company Hy2Gen intends to build a facility for producing hydrogen and synthetic fuels, primarily for maritime transport.
The planned 200-megawatt e‑methanol plant would make Oulu the largest synthetic fuel production center in the Baltic Sea region, based on announced plans for fuel production facilities. Synthetic fuels are fully compatible with those currently used in cars and ships, but they are produced using renewable electricity, hydrogen derived from water, and carbon dioxide captured from industrial emissions.
“Hy2Gen is very pleased to secure a location for the project at Oulu Port,” says Hege Økland, CEO of Hy2Gen Nordic. “We want to thank the City of Oulu and Oulu Port for choosing us as a partner in developing this area. We look forward to working together on the project.”
Hy2Gen’s product portfolio includes renewable hydrogen, ammonia, methanol, and PtX fuels such as sustainable aviation fuel (SAF). The company’s first projects are already underway in France, Norway, Canada, and Germany. Hy2Gen’s renewable hydrogen and e‑methane plant in Welt, Germany, has been operational for several years.
Oulu Grows as a Green Industry Hub
“Oulu now has more synthetic fuel production projects planned than any other location in the Baltic Sea region,” says Marko Kilpeläinen, Director of Urban Environment for the City of Oulu.
Previous announcements of planned production facilities in Oulu have come from French company Verso Energy, German companies Energiequelle and ABO Energy, and Finnish companies P2X Solutions and Oulun Energia.
Competitive Advantage: Affordable Electricity
“Finland’s advantage in attracting new plants lies in having some of the lowest electricity prices in Europe, and the Oulu region is the largest producer of renewable electricity in the northern Baltic,” notes Janne Hietaniemi, Customer Manager at BusinessOulu.
This is not yet Hy2Gen’s final investment decision. After the City of Oulu grants the planning reservation, the company will begin preparing more detailed plans. Hy2Gen will announce further details about the project at the Northern Power event in Oulu on February 12, 2026. The event will bring together hundreds of international decision-makers, innovators, researchers, and investors to discuss the future of hydrogen energy in the Nordic countries.