Finland Hopes e-Fuels Can Recreate the Nokia Magic

by Charles Szumski and Donagh Cagney (Euractiv) ... Energy company Freija AS has announced plans to build a major e-methane production facility in the Finnish town of Nokia – the original home of the former phone giant.

The announcement yesterday is a victory for Finland, which targets hydrogen and e-fuel production to maintain its prosperity, even as it decarbonises its economy.

E-methane is a carbon-neutral fuel produced by combining renewables-based hydrogen with captured carbon dioxide and has a key role in decarbonising transport modes like maritime and aviation.

Kristian Hauglum, the CEO of Freija, a Norwegian company, cited Finland's ambitious environmental goals, highly skilled workforce, and strategic location in Tampere as reasons for choosing the region.

The production facility is also touted as one of the largest in Europe and will be operational in 2029.

In early 2023, the government decided to target the production of hydrogen and related e-fuels for domestic use, but also with an eye on "high-value-added export businesses," according to Minister of Economic Affairs Mika Lintilä.

Production of e-fuels is power-intense, so competitively-priced and low-carbon e-fuels need electricity that is also cheap and clean – just like Finland's.

A similar e-methane plant is being developed on Lake Tarastenjärvi in Tampere, a city northwest of Helsinki, with production possibly starting as early as 2026. Another billion-euro investment in the southwestern town of Pori aims to capture carbon emissions from existing power plants for fuel production. READ MORE

Excerpt from Yle: According to Yle, this is an investment in the billions. The factory could directly employ at least a hundred people, in addition to which subcontractors are expected to work.

The employment impact during the construction phase will be significant, as the factory will be built over several years. Production could begin in 2029.

E-methane is made from hydrogen and carbon dioxide, which is recovered from, for example, the flue gases of energy plants. Carbon dioxide is also obtained from pulp mill processes.

If the plant is implemented, it will also provide heat for apartments through the Tampere area's district heating network.

Tampere Mayor Kalervo Kummola and Nokia Mayor Eero Väätäinen say in a press release that the investment would be significant if realized.

The project still requires a lot of research, such as an environmental impact assessment.

Another large plant is coming to Tampere

Another renewable e-methane and district heating cogeneration plant is also coming to Lake Tarastenjärvi in Tampere.

Also coming to Pori

For example, a huge investment is coming to Pori if Nordic Ren-Gas' plans come true. It would be a production plant costing over a billion euros.

It has previously been reported that approximately half of the carbon dioxide emissions from the Aittaluoto power plant, or 100,000 tons, would be captured. This would enable the production of approximately 24,000 tons of gas fuel in Pori. READ MORE