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Four demonstration projects on new energy technology to receive over EUR 64 million in investment aid

Ministry of Economic Affairs and Employment
20.12.2021 12.03 | Published in English on 4.1.2022 at 10.35
Press release
Kuvassa on elinkeinoministeri Mika Lintilä.
Elinkeinoministeri Mika Lintilä

On 17 December 2021, the Ministry of Economic Affairs and Employment decided to grant investment aid to four major renewable energy demonstration projects. The total amount of aid granted was EUR 64.12 million.

Two of the projects are related to the production and use of renewable hydrogen, one concerns the energy-efficient use of waste heat, and one is related to seasonal heat storage connected to a large district heating network. 

“These projects will speed up future energy technologies, such as hydrogen. The aid granted will kick-start projects worth almost EUR 230 million, and their impact will be felt in the regions,” says Minister of Economic Affairs Mika Lintilä.

Aid to Harjavalta, Vantaa, Vaasa and Janakkala 

P2X solutions Oy was granted EUR 25,760,000 for investments in renewable hydrogen production in Harjavalta. The novelty value of the project is the production of renewable hydrogen on an industrial scale for industrial and transport use, as well as the integration of a renewable methane production plant with renewable hydrogen production. Due to the amount of aid, the decision to grant it was conditioned on the European Commission’s approval.
 
Vantaa Energia Oy was granted EUR 19,033,000 for investments in a seasonal heat storage in Vantaa. The novelty value of the project is to even out seasonal variation in energy in a large storage, which is designed to optimally support the energy system. The excess heat of the summer time will be used during the peak consumption during the winter, which will reduce the use of fossil fuels significantly. Due to the amount of aid, the decision to grant it was conditioned on the European Commission’s approval. 
 
EPV Energia Oy was granted EUR 14,171,000 for an investment in the production, storage and use of hydrogen produced with renewable electricity in Vaasa. The project will be carried out jointly with Vaasan Sähkö and Wärtsilä. The novelty value of the project is the combination of the production, storage and use of renewable hydrogen in an engine power plant, in which the entity is integrated into the flexible electricity market. 
 
Tervakoski Oy was granted EUR 5,159,000 for a heat pump investment to produce steam from the plant’s waste heat in Janakkala. The novelty value of the project is the method in which heat pumps utilise several industrial waste heat sources to produce low-pressure vapour. 
 
A grant authorisation of EUR 60 million was reserved in the 2021 budget for investment aid for large-scale demonstration projects on new energy technology. Its objective is in particular to help achieve the national and EU-level targets set for future energy solutions by 2030. In addition, the Ministry of Economic Affairs and Employment may allocate a part of the unused budget authority of approximately EUR 59 million of the aid for phasing out the use of coal energy in an accelerated manner to these demonstration projects. 

The additional authorisation enables a larger aid package than planned. In 2022, the call for applications for energy investments under the EU’s Recovery and Resilience Facility (RRF) may also open aid opportunities for projects with an impactful novelty value. 

By the end of 28 February 2021, 22 applications for large-scale demonstration projects on new energy technology were submitted to the Ministry of Economic Affairs and Employment. In addition, applications received in 2019 and 2020 for which no decision had yet been made were transferred to the pool of applications. 

The applications were assessed and compared with each other. The project's demonstration value, feasibility, energy impacts, cost-effectiveness and other impacts were taken into account in the overall consideration. The aim is to grant support to projects so that the objectives concerning future energy solutions can be achieved in the best possible way when assessed as a whole.  

Inquiries: 
Kati Veijonen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 170
Jukka Ihanus, State Secretary to the Minister of Economic Affairs, tel. +358 295 047 259
 

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