Ministerial Finance Committee recommends aid to three demonstration projects on new energy technology

On 5 June 2025, the Ministerial Finance Committee of the Finnish Government -approved in favour of granting investment aid totalling EUR 49.5 to three demonstration projects on new energy technology. The projects concern the production of renewable methanol, liquefied biomethane and bioethanol. Decisions on subsidies have not yet been made. The Ministry of Economic Affairs and Employment will prepare the aid decisions for the decision of Minister of the Climate and the Environment Sari Multala shortly.

The Government’s Ministerial Finance Committee approved in favour of commitments to grant EUR 27.9 million to Vanadis Fuels Ab Oy for the construction of a renewable methanol production plant in Kokkola, EUR 11.6 million to Lännen Biokaasu Oy for the construction of a liquefied biomethane plant in Kurikka and EUR 10 million to BioEnergo Oy for the construction of a bioethanol plant in Pori. 

“These investments would reduce carbon dioxide emissions by close to half a million tonnes per year and employ almost 300 people after the construction phase. The projects will contribute towards the objectives of the Government Programme, including the phasing out fossil fuels in transport with the help of different technologies,” minister Multala says. 

The approvals made by the Ministerial Finance Committee are part of the call for applications published in 2023 to fund large-scale demonstration projects on new energy technology, for which EUR 145.5 million was reserved. Approximately EUR 92.7 million was granted for investment projects related to the production of electrofuels, hydrogen and biogas as well as the capture of bio-based carbon dioxide and energy storage in 2024. 

The objective of the investment aid is to help achieve the national targets set for future energy solutions by 2035 and the EU targets by 2030. The aim is to promote nationally and internationally replicable solutions based on new energy technologies. 

The links below provide more information on the projects in Finnish.

Inquiries:
Pekka Grönlund, -Deputy Director General, Ministry of Economic Affairs and Employment, tel. +358 295 064 815
Tuula Savola, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 133
Lyydia Ylönen, Special Adviser to the Minister of Climate and the Environment, tel. +358 50 476 1341