Hydrogen from Finland for Polish Industry – ORLEN Signs Key Agreements

(ORLEN) ORLEN has entered into cooperation agreements with three Finnish partners for the production and supply of renewable hydrogen and its derivatives. The agreements signed with ABO Energy Suomi, Nordic Ren-Gas and VolagHy Kuopio SPV will help secure hydrogen supplies during a period of growing demand in the years ahead. The Group is developing hydrogen technologies as one of the key pillars of industrial decarbonisation. ORLEN also plans to utilise salt caverns located in Poland for large-scale underground storage of the fuel.

“The Polish economy should continue to diversify its energy sources, as this is crucial for strengthening our economic and political security. The agreements we have signed open new opportunities for the development of hydrogen technologies and production capabilities in Poland”, emphasizes Wojciech Balczun, Minister of State Assets. “Hydrogen is widely regarded as the fuel of the future, and Polish companies must take part in the race to fully leverage its potential. ORLEN has the resources and the necessary know‑how to play a significant role in this market, and it will now benefit from the support of experienced partners from Finland, one of our close allies”, adds the Minister.

The Finnish companies with which ORLEN has signed the agreements are implementing key projects in the area of production of renewable hydrogen and its derivatives: ABO Energy Suomi is developing installations with a total capacity of up to 100,000 tonnes of hydrogen per year, Nordic Ren-Gas is constructing integrated facilities producing e-methane using renewable hydrogen and biogenic CO₂, and VolagHy Kuopio SPV is developing a synthetic fuel production project with a capacity of approximately 50,000 tonnes per year, with plans for further expansion across the Nordic region.

“The agreements we have signed represent to us a key building block in the development of a European hydrogen ecosystem. They enable us to tap into the expertise, experience, and capabilities of the Finnish companies, ensuring access to competitively priced hydrogen that can be safely stored in Poland and supplied across Central Europe. All three companies are consistently advancing hydrogen technologies and pursuing climate neutrality. This is also one of our strategic objectives, which is why I am confident that our cooperation will constitute an important step towards the wider adoption of renewable hydrogen as one of the cornerstones of the decarbonisation of the EU’s industrial and transport sectors,” said Marcin Wasilewski, Member of the Management Board for Transition at ORLEN.

The agreements also provide for cooperation on developing a model for future supplies of hydrogen and its derivatives to Poland. The partners will also work together to define the logistical conditions enabling the transport of hydrogen and its derivatives from Finland to the ORLEN Group’s refining and chemical facilities in Poland.

“Hydrogen can serve both as a fuel and an energy carrier, and it is also an indispensable component of many industrial processes. Each of these applications requires efficient transmission and, above all, storage of this resource. ORLEN Group companies engaged in gas and crude oil exploration and production have unique experience and expertise in the construction and operation of underground gas storage facilities. They can effectively support the energy transition and the energy security of our region, both today and in the future,” said Wiesław Prugar, Member of the Management Board for Upstream at ORLEN.

ORLEN currently operates seven active underground gas storage facilities. The Group plans to expand its hydrogen transmission and storage capabilities, leveraging its expertise and experience in geology and drilling, as well as its in-depth knowledge of Poland’s geological conditions.

The agreements signed mark a further milestone in the expansion of ORLEN’s cooperation with Finnish partners in the hydrogen sector. Last year, the Group entered into its first agreement with P2X Solutions Oy, Finland’s leading producer of renewable hydrogen. The company operates Finland’s first industrial-scale facility for the production of renewable hydrogen and e-methane in Harjavalta and is pursuing further investments aimed at achieving 1 GW of installed production capacity within the next decade.

“I am happy to see Finnish-Polish cooperation gaining momentum. Finland’s diversified energy mix provides some of Europe’s most stable and affordable energy prices, enabling companies to scale up hydrogen production and support the clean transition. Joint projects enhance competitiveness and energy security in both countries,” said Ville Tavio, Minister for Foreign Trade and Development of Finland.

Cooperation with partners from the Baltic Sea region represents an important step towards building stable supply chains for hydrogen and its derivatives to Poland. By drawing on the experience of its international partners, ORLEN is paving the way for diversified and cost-competitive supplies of renewable hydrogen to support the deployment of domestic solutions which, over the coming years, will play a key role in delivering zero-emission fuels, in line with the Group’s strategy to 2035.

Nordic Ren-Gas Oy specialises in the development of renewable e-methane production infrastructure at several locations in Finland. The company maintains a portfolio of six projects involving the development of integrated installations for the production of synthetic methane based on renewable hydrogen generated on site and biogenic CO₂ captured from industrial flue gases. By 2035, the company plans to scale up e-methane output to 2.7 TWh per year. www.ren-gas.com/en/

VolagHy Kuopio SPV Oy is implementing a large-scale synthetic aviation fuel (eSAF) production project located in Kuopio, Finland, with a planned production capacity of approximately 50,000 tonnes of eSAF from 2031. The production process will use renewable hydrogen and biogenic CO₂. VolagHy’s ambition is to build five eSAF plants in the Nordic countries by 2040. The project was recently awarded a 150 MEUR tax grant by the Finnish state. www.volaghy.com

ABO Energy Suomi Oy is developing two major hydrogen projects in Oulu and Nivala, Finland, with a combined planned production capacity of up to 100,000 tonnes of hydrogen per year. The projects are expected to reach full operational capacity in 2035. German-based ABO Energy operates in the renewable energy sector across several countries, including Finland and Poland. www.aboenergy.com/ READ MORE