US electrolyser manufacturer Plug Power has set out plans to deploy 2.2GW of electrolyser capacity across three sites in Finland with an investment of around $6bn in one of Europe’s largest green hydrogen supply projects.

The move comes amid growing interest in Finland as a strategic location for green hydrogen production due to its access to affordable renewable and nuclear power, and the country’s push to develop both domestic and export pipeline infrastructure.

“Finland’s abundant decarbonised and growing renewable energy sources makes it the most strategic location,” says Benjamin Haycraft, executive vice-president Emea region at Plug, which is based in New York.

“Finland’s abundant decarbonised and growing renewable energy sources makes it the most strategic location” Haycraft, Plug

Plug is working with a consortium including commodities trader Trafigura, hydrogen project developer Hy2gen, French technology company Technip Energies and green steel specialist GravitHy with the aim of reaching FID by 2025–26 and commissioning the three facilities by the end of the decade.

At full scale, the three plants would produce a combined 850t/d of green hydrogen for export to European markets via pipelines and by ship as ammonia and liquid hydrogen. The hydrogen will also be used to meet local demand, including from a new green steel facility to be developed at one of the sites.

Plug says it has initiated discussions with large financial investors and debt providers. It expects the capital structure to include a majority of non-recourse debt, similar to other renewable asset financing. The company is also in talks with potential buyers to put in place offtake deals with creditworthy counterparties.

Plug has secured access to the three sites at Kokkola, Kristinestad and Porvoo.

At Kokkola, a planned 1GW facility is expected to generate 85t/d of liquid green hydrogen and up to 700,000t/yr of green ammonia. The liquid green hydrogen will be produced for local use and for export to Western Europe from the nearby port. Green ammonia will also be exported via the port.

Kokkola has caught the eye of other developers. Finnish company Flexens has signed a letter of intent to lease land for a 300MW green hydrogen and ammonia facility in the industrial park area.

At Kristinestad, Plug’s project envisages a 1GW electrolyser deployed near a former coal plant that will produce 2mn t/yr of direct reduced iron and hot briquetted iron for export via the local port.

The third site, at Porvoo, will produce up to 100t/d of hydrogen for local mobility and for export by pipeline to Western Europe.

Finnish state-owned gas transmission system operator (TSO) Gasgrid is developing domestic hydrogen networks and export capacity. It is also working with Swedish gas network operator Nordion Energi to develop the Nordic Hydrogen Route, which by 2030 aims to connect green hydrogen production with demand sites via a 1,000km pipeline following the Bothnian Bay coastline, with major branches to expected demand centres such as Gallivare or Kiruna.

Power play

Access to renewable and nuclear power is a big draw for Plug and its project partners. Finland recently launched commercial operations at a new 1.6GW nuclear reactor, boosting power supply after the 2022 energy crisis caused by the halt in imports from Russia following its invasion of Ukraine. Spot power prices in Finland turned negative at one stage in May because of oversupply on the grid.

The Finnish power system also includes significant hydroelectric and bioenergy power generation capacity. The government has set an economy-wide target to be net zero by 2035.

Plug has signed memorandums of understanding with Gasgrid and Finland’s electricity TSO, Fingrid. Plug is working closely with the two operators to ensure grid capacity and the development of hydrogen infrastructure.

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Author: Stuart Penson