Oulu Energy is in the initial stages of planning what it believes will be a ground-breaking 100 MW hydrogen production plant in Oulu, northern Finland, marking a significant step towards clean energy production. The initiative aligns with Oulu Energy's broader objective of achieving carbon neutrality by the year 2030. Collaborating on the project planning is Finnish company P2X Solutions, currently engaged in the construction of a hydrogen production plant in Harjavalta, western Finland.

The project, located in the Laanila industrial area, encompasses an array of key components that include an electrolysis plant with a capacity of up to 100 MW, a carbon capture plant, hydrogen and carbon dioxide storage facilities, and an additional processing plant capable of producing end products such as methane or methanol.

This venture marks Oulu Energy's inaugural foray into the realm of hydrogen projects and holds significance on a European scale. Beyond the scope of environmental benefits, the project is poised to foster development opportunities for industry, and create new businesses and jobs in the Oulu region.

Initial estimates suggest that the project could generate 200–400 GWh hours of heat energy every year as a by-product, which could be seamlessly integrated into the district heating network. Simultaneously, the project could recover oxygen for industrial applications.

The project also seeks to explore the potential of utilising biogenic flue gases from local industry and power plants in the further processing of hydrogen, aligning with a holistic approach to sustainable energy solutions. ‘Biogenic’ refers to gases such as CO2 from combustion that are produced by human activity.

The developmental phase of the project is to be led by P2X Solutions Ltd, a specialist in green hydrogen and Power-to-X technology. The company is involved in the construction Finland's inaugural industrial-scale green hydrogen and synthetic methane production plant in Harjavalta and Joensuu in western Finland.

The current phase of Laanila project development involves a comprehensive examination of the plant's feasibility, consideration of potential locations, and an impact assessment. The critical investment decision is anticipated for the autumn of 2025, with the earliest operational readiness of the plant estimated to be in 2028.