Plug Power plans three green hydrogen projects using Finnish renewables

Plug Power has announced plans for three green hydrogen projects in Finland powered by wind, solar and nuclear that will together have 2.2GW of electrolyser capacity, producing 850 t/day of hydrogen.

by Janet Wood 8 June 2023

The Port of Kokkola will be used to export liquid hydrogen and ammonia from a 1GW electrolyser (Image credit: Blom/Getty Images)

The company plans to take a final investment decision (FID) by 2026 at the latest and to have the projects in operation by the end of the decade. Hydrogen will be produced at the sites using Plug Power’s PEM electrolyser technology.

Investment structure

Plug Power said it has already begun discussions with large investors and debt providers. It expects the capital structure will include a majority of non-recourse debt, similar to other renewables asset financing. 

As well as financial partners it is looking for industrial partners, with the aim of securing “offtake commitments from creditworthy counterparties” before the projects reach FID.

Three municipalities have agreed access to sites which are “strategically located in Finland to take advantage of its abundant decarbonised and clean energy sources such as nuclear, wind and hydropower”.

A 1GW electrolyser at Kokkola is expected to generate 85t/day of liquid hydrogen and up to 700kt/y of ammonia for local use and export via the Port of Kokkola. 

Plug Power is partnering with Hy2Gen, which is backed by infrastructure fund Hy24, investors Mirova and CDPQ, engineering firm Technip Energies, as well as commodities company Trafigura.

Another 1GW electrolyser is to be developed at Kristinestad in partnership with GravitHy, for which it was a founding partner alongside EIT InnoEnergy, Engie, Forvia, IDEC and Primetals. Located close to a former coal plant, it will produce hydrogen to manufacture 2Mt/y of direct reduced iron (DRI) for green steel.

Mila Segervall, mayor of Kristinestad, said his municipality had been working for a long time to develop green energy through wind, solar and hydrogen. “We are a European pioneer in the green transition,” he said, adding that the project will have positive impacts on the entire region’s economy.

Click here to subscribe to the green hydrogen bulletin to receive fortnightly dedicated news, analysis and comment straight to your inbox.

To submit a news, comment, case study or analysis idea for the green hydrogen bulletin, contact the editorial team.