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Clean energy projects receive EUR 119 million in funding

Ministry of Economic Affairs and Employment
Publication date 16.12.2022 16.40 | Published in English on 20.12.2022 at 11.41
Type:Press release
Sustainable growth programme for Finland

The Ministry of Economic Affairs and Employment has granted a total of EUR 119,196,068 to 16 clean energy projects under Finland’s Recovery and Resilience Plan.

“The projects will increase domestic production of renewable energy and help advance the use of affordable and clean energy in the future. I am also pleased with the projects promoting low-emissions industry, as we will have a great need for them going forward,” says Minister of Economic Affairs Mika Lintilä.

Seven energy infrastructure projects granted EUR 52 million

Funding was granted for smart solutions in the transmission and distribution of electricity and for heat recovery. The projects will enable significant increase in the capacity for renewable electricity in the transmission network and promote the use of different waste heat sources in district heating networks. 

  • Fingrid Oyj was granted EUR 13.72 million to invest in a substation for the main grid. (Espoo)
  • Fingrid Oyj was granted EUR 8 million for a synchronous compensation project. (Kalajoki)
  • Fingrid Oyj was granted EUR 3.2 million for a parallel compensation project. (Petäjävesi, Jämsä, Espoo, Nykarleby, Hausjärvi and Alajärvi) 
  • Helen Oy was granted EUR 14.53 million for the Eira heat pump plant (Helsinki)
  • Loiste Lämpö Oy was granted EUR 5.35 million for the renewal of heat production in Kajaani. (Kajaani)
  • EUR 5.06 million was granted to Tampereen Sähkölaitos for power plant heat recovery with heat pumps. (Tampere)
  • Keskusosuuskunta Oulun Seudun Sähkö was granted EUR 2.26 million for converting the production of district heating to renewable sources. (Liminka)

EUR 57 million granted to five new energy technology projects

Funding was granted for projects related to biogas production and industrial-scale solar power.

  • Suomen Lantakaasu Oy was granted EUR 19.15 million to invest in a production plant for liquefied biogas. (Kiuruvesi)
  • EPV Aurinkovoima Oy was granted EUR 12 million for an investment in industrial-scale solar power production. (Lapua)
  • Callio-Hitura Solarpark Oy was granted EUR 12.1 million for an investment in industrial-scale solar power plant. (Nivala and Pyhäjärvi)
  • EUR 10.28 million was granted to IBV Lappi Oy for an investment in industrial-scale solar power. (Rauma)
  • CPC Lakarin Aurinkovoima Oy was granted EUR 3.53 million for an investment in industrial-scale solar power production. (Rauma)

EUR 10 million granted to four projects on electrification of industrial processes 

Funding was granted to projects that promote energy efficiency and electrification and decarbonisation of industry.

  • Adven Oy was granted EUR 3.61 million for electrifying the industrial evaporation process and increasing energy efficiency.
  • Adven Oy was granted EUR 0.96 million for the electrification of industrial steam production and the production of solar power. (Jepua)
  • Knauf Oy was granted EUR 2.83 million for an energy-efficient dryer. (Kankaanpää) 
  • Tervakoski Oy was granted EUR 2.56 million for the electrification of industrial steam production in a paper mill. (Janakkala)

More detailed information on the different project types and the projects that the Ministry granted aid to is available in the appendixFile opens in a new tab pdf 271kB

Remaining funding for low-carbon hydrogen projects will be allocated to EU’s IPCEI projects

In October 2022, the Ministry of Economic Affairs and Employment granted funding for two projects promoting the utilisation of low-carbon hydrogen. Vantaan Energia Oy received EUR 30.22 million and St1 Oy EUR 35.4 million. The funding package on low-carbon hydrogen also funds important projects of common European interest (IPCEI) on hydrogen. The remaining budget authority available has been transferred to Business Finland for IPCEI in hydrogen. Business Finland will make the funding decisions later.

Remaining aid decisions will be made in early 2023

The granting of aid is based on a comparison of applications by project type. In its overall consideration, the Ministry of Economic Affairs and Employment assessed the impact of investments relative to the objectives set in Finland’s Recovery and Resilience Plan. The Ministry paid particular attention to energy and emission impacts of the projects, cost-effectiveness, feasibility, novelty value of the technology included in the projects, replicability of the technology or project, and other impacts of the projects. The projects will be funded from the EU’s Recovery and Resilience Facility (RRF). The investments must be completed by 30 June 2026, and therefore the assessment paid particular attention to the feasibility of projects.

The Ministry of Economic Affairs and Employment made the first decisions on energy investment aid under Finland’s Recovery and Resilience plan on 4 October 2022. Aid was granted to six projects totalling EUR 99.8 million. So far, EUR 219 million has been granted. The remaining aid decisions will be made in early 2023. EUR 172.8 million remains from the budget authority. In addition, according to the budget proposal for 2023, a budget authority of EUR 30 million has been reserved for investments in new energy technology next year.

Applications for energy investment aid were accepted from 20 December 2021 to 4 March 2022. In all, 86 applications were submitted for a total of EUR 1.65 billion.

Aid applications for demonstration projects of new energy technology are being processed

In addition to the energy investment aid from the EU’s Recovery and Resilience Facility (RRF), support for large-scale demonstration projects on new energy technology has been available too. Funding applications for such projects, including hydrogen projects, were accepted until the end of August. In 2022, approximately EUR 153 million in funding is available for large demonstration projects on new energy technology. The decisions on RRF energy investment aid projects have been delayed and the processing of large demonstration project applications is still under way. Most of the decisions will be made in the first half of 2023. 
 
Press release: Ministry of Economic Affairs receives 31 new applications for large demonstration projects on new energy technology 

Companies can apply for aid from Business Finland for energy investments that have an investment cost of less than EUR 5 million. Applications can be submitted at any time.
 
More information about energy aid granted by Business FinlandLink to an external website

Inquiries: Hannes Torppa, Special Adviser to the Minister of Economic Affairs, tel. +358 29 504 7405 
Pekka Grönlund, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 29 506 4815 
Juho Korteniemi, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 29 504 7054

Funded by the European Union – NextGenerationEU
Read more about applying for energy investment aid under Finland’s Recovery and Resilience Plan
Press release, 4 October 2022: Six clean energy projects receive close to EUR 100 million in investment aid
Press release, 22 September 2022: Two Finnish projects join the new European value chain for hydrogen economy
Appendix: Project descriptions of energy investment aid decisions (later available in English)File opens in a new tab pdf 271kB
Mika Lintilä
confederations of states endurance energy energy policy energy technology enterprises finance growth industry investments low-carbon organisations technology
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