VolagHy Secures €150M Tax Credit for Kuopio eSAF Project
- VolagHy's Kuopio project receives a €150M tax credit from Business Finland.
- The tax credit covers 20% of eligible project costs over 10 to 20 years.
- The Kuopio plant will produce 50,000 tons of eSAF annually using green electricity.
- VolagHy plans to establish five eSAF facilities in the Nordics by 2040.
Project Overview
VolagHy, supported by InnoEnergy, is advancing the synthetic aviation fuel (eSAF) industry in Europe. The company is leveraging a network of industrial partners, financial institutions, policymakers, and academic networks to industrialize eSAF production and replicate its model across Europe.
Kuopio Flagship Plant
The first flagship plant is under development in Kuopio, Finland, with plans to produce 50,000 tons of eSAF annually using green electricity. The project aims to set a blueprint for large-scale sustainable aviation fuel rollout in Europe, with a goal to establish five eSAF facilities across the Nordics by 2040.
Financial Support
Business Finland has awarded the Kuopio project a €150 million tax credit, covering 20% of total eligible project costs. This incentive will be generated over a period of 10 to 20 years, depending on the project's development, strengthening its financial profile and local anchoring in Finland.
Local Integration and Partnerships
The project integrates biogenic CO₂ potentially sourced from Mondi's nearby pulp and paper mill. This collaboration supports emission reduction objectives and highlights the attractiveness of the Kuopio region. The waste heat generated by VolagHy's process is also seen as a valuable resource for the local district heating network, providing additional flexibility and reducing environmental impact.
Source: VolagHy