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Six clean energy projects receive close to EUR 100 million in investment aid

Ministry of Economic Affairs and Employment
Publication date 4.10.2022 13.59
Press release
Sustainable growth programme for Finland

On 4 October, the Ministry of Economic Affairs and Employment made the first energy investment aid decisions under Finland’s Recovery and Resilience Plan to promote clean energy solutions. Aid was granted to six projects totalling EUR 99.8 million.

Two of the projects utilise renewable hydrogen in the production of electrofuels, two projects significantly increase solar power generation and two projects electrify industrial processes.

“These investment decisions support large-scale domestic projects that will drive forward future energy solutions. They are important for both climate objectives and the energy system. Companies will also benefit from new business opportunities. At the same time as we find new solutions for industrial-scale implementation, our security of supply in energy will improve and the use of fossil energy will continue to decrease,” says Minister of Economic Affairs Mika Lintilä.

Vantaa Energia Oy and St1 Oy utilise renewable hydrogen in electrofuel production

The Ministry granted EUR 30.22 million to Vantaa Energia Oy and to EUR 35.4 million to St1 Oy for production plant investments. Vantaa Energia will produce renewable methane and St1 renewable methanol, with both projects demonstrating the production of electrofuels on an industrial scale by utilising renewable hydrogen. The projects combine the production of renewable hydrogen, capture of carbon dioxide and the methanol or methanation process in a new way. At the same time, the projects utilise the waste heat generated in the production process.

Ilmatar Energy Oy and Exilion Tuulihankkeet Ky boost production of solar electricity

Ilmatar Energy Oy was granted EUR 19.56 million and Exilion Tuulihankkeet Ky EUR 8.9 million for investments in solar electricity. The projects will demonstrate the production of solar electricity on an industrial scale in a way that integrates solar power with wind power production and electricity storage. The future power plants of Ilmatar Energy Oy and Exilion Tuulihankkeet Ky will generate 150 MW and 70 MW of electricity, respectively. These projects are significantly larger in scale than the current solar power plants in Finland, which generate up to 10 MW of electricity. There are also no solar power plants of this size in the Nordic countries. 

Fiskars Finland Oy AB and Mäkelä Alu Oy electrify industrial processes and reduce gas use

Fiskars Finland Oy Ab was granted EUR 2.87 million and Mäkelä Alu Oy EUR 2.85 million for investments in electrification of industry. The projects will electrify production processes and reduce the use of natural gas and liquefied petroleum gas. In addition, carbon dioxide emissions from production will decrease significantly and energy efficiency of production will improve. 

More detailed information on the different project types and the projects that were awarded aid now is available in the appendix.

More aid decisions to come by the end of 2022

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 processing of other applications submitted is also well under way, with the Ministry aiming to make the rest of the aid decisions by the end of 2022. Funding has been reserved for allocation to these project decisions from the EUR 353 million remaining in the budget authority for 2022. Moreover, 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.
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 Finland

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

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