Chemical Industry News, Data & Insights

ESE and Nordic Ren-Gas Partner on €100M Hydrogen Project in Mikkeli

Key highlights
  • The project involves a €100 million investment in a Power-to-Gas facility in Mikkeli.
  • The facility will have an electrolysis capacity of over 40 megawatts, producing renewable methane and hydrogen.
  • Phase one, with a 20 MW electrolyser, is set for completion by 2026, and phase two by 2030.
  • The feasibility study begins in February 2022, with construction starting in 2023.

Project Overview

Etelä-Savon Energia Oy and Nordic Ren-Gas Oy have signed a cooperation agreement to conduct a feasibility study for a Power-to-Gas facility in Mikkeli. This facility aims to produce renewable methane and green hydrogen, contributing to the hydrogen economy and Ren-Gas's clean gas production network.

Technical and Economic Feasibility

The study will assess the technical and commercial viability of the Power-to-Gas plant at the Pursiala power plant site. The project, valued at over €100 million, may be implemented in phases, with the first phase expected to be completed by 2026 and the second by 2030.

Facility Specifications

The planned facility will have an electrolysis capacity exceeding 40 megawatts, producing synthetic methane to replace approximately 18 million liters of fossil fuel in heavy transportation. This amount corresponds to the annual fuel consumption of 600 heavy trucks in Finland.

Project Development

Nordic Ren-Gas Oy will lead the feasibility study, focusing on developing and owning Power-to-Gas production facilities and distributing renewable transportation fuels. The study will begin in February 2022, with construction of the first phase starting in 2023.

Environmental Impact

The project supports Etelä-Savon Energia's carbon neutrality goals by providing carbon dioxide-free district heating through waste heat reuse. By 2030, almost 40% of ESE's district heat could be produced cost-effectively with waste heat, making the company carbon negative.