Two Finnish projects join the new European value chain for hydrogen economy
The European Commission has selected the projects of P2X Solutions Oy and Solar Foods Oy for a new European value chain for hydrogen economy, which will boost the production of clean hydrogen and develop new uses for hydrogen.
In all, there are projects in 13 Member States that will receive public support of up to EUR 5.2 billion. This public support is also expected to generate private investments of EUR 7 billion.
“Now, if ever, Europe must invest in the production of renewable hydrogen and its innovative use. Finland has a long record in supporting investments in hydrogen economy. I am pleased that more Finnish projects are now part of the European cooperation,” says Minister of Economic Affairs Mika Lintilä.
The projects selected by the Commission on 21 September 2022 belong to the second hydrogen value chain. The Commission approved projects for the first value chain in July 2022, including Neste Oyj’s project on clean hydrogen technology. These Important Projects of Common European Interest (IPCEI) are subject to separate and lighter state aid rules under which the states can support companies more flexibly than usual.
The Commission has set the target of producing 10 million tonnes of clean hydrogen by 2030. The objective of the approved projects is to generate cross-border cooperation between companies in the Member States. Cooperation is needed in order for Europe to become a leading player in the production and exploitation of hydrogen at the industrial level.
Funding granted to Finland’s P2X Solutions Oy and Solar Foods Oy
In the second application round, the Commission selected projects that support the introduction of the first hydrogen value chain and the construction of related infrastructure. The projects selected from Finland promote the production of renewable hydrogen and carbon dioxide capture, as well as their processing and innovative use.
P2X Solutions Oy’s project promotes carbon neutrality and environmental objectives in both industry and transport by producing green hydrogen and renewable synthetic fuels. In its project, P2X Solutions will construct 70 MW of green hydrogen production capacity and a methanation plant to produce renewable synthetic methane. The company is currently constructing a 20 MW green hydrogen and synthetic methane production plant in Harjavalta.
Meanwhile, Solar Foods produces protein by utilising carbon dioxide and renewable electricity. Solar Foods is constructing the first industrial-scale factory where the hydrogen technology used is completely new. The first stage of the project is a demonstration plant, Factory 01, to be built in Vantaa.
Business Finland will make the final funding decisions for the Finnish projects in autumn 2022.
The 35 projects now approved by the Commission include 29 companies operating in one or more Member States. SMEs and start-ups are also involved.
Projects will be funded from the Sustainable Growth Programme for Finland
In Finland, projects related to the value chain for the hydrogen economy are part of the Sustainable Growth Programme for Finland, funded through the EU’s Recovery and Resilience Facility. The projects will support the objective of the Government to achieve a carbon neutral Finland by 2035.
In accordance with Finland’s Sustainable Growth Programme, funding will be allocated to investments in the hydrogen value chain, where hydrogen will be used by industry, transport or any other new products and solutions based on the utilisation of carbon dioxide. Above all, the production of hydrogen in the projects will be based on the use of low-carbon electricity.
The funded projects must fully support the climate criteria defined in the EU’s Recovery and Resilience Facility (RRF). Projects must also comply with the “do no significant harm” principle (DNSH), which means that investments must not significantly harm environmental goals.
Anita Silanterä, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 256
Juho Korteniemi, Chief Specialist (energy technologies), Ministry of Economic Affairs and Employment, tel. +358 295 047 054
Tero Ijäs, Ecosystem Lead, Energy, Business Finland, tel. +358 50 599 2620
Markku Kivistö, Head of Industry, Cleantech, Invest In Finland, Business Finland, tel. +358 50 557 7968