US firm Plug Power plans 3 hydrogen plants in Finland

US company Plug Power has planned to develop three green hydrogen production plants in Finland, said the company in a press release on Tuesday.

The plants will be set up at Kokkola, Kristinestad and Porvoo are expected to produce 850 tons per day (TPD) of green hydrogen, or 2.2 gigawatts (GW) of electrolyzer capacity, by the end of the decade with final investment decision by 2025-2026.

These projects are expected to represent some of the largest investments in the European market. Plug has initiated discussions with large financial investors and debt providers. Plug expects capital structure will include a majority of non-recourse debt, similar to other renewable asset financing.

Plug’s Chief Executive Officer Andy Marsh on Tuesday at a signing ceremony in Helsinki secured the commitment of three Finnish municipalities to access land for the projects.

The planned Kokkola plant is expected to generate 85TPD of liquid green hydrogen, and up to 700 kt of green ammonia per year, using 1GW of electrolyzers. The liquid green hydrogen will be produced for local use and for export to western Europe from the Port of Kokkola. Green ammonia will also be exported through the same port.

The Kristinestad plant using 1GW electrolyzer will generate green hydrogen for green steel production.

Porvoo plant will produce up to 100TPD by 2030. The hydrogen will be used for local mobility and exported through pipeline injection to Western Europe.

“Already one of the largest players in the European hydrogen market, Plug is accelerating its commitment to Europe at an unprecedented scale with these three planned historic industrial sector projects collaborating with both financial and industrial partners. We are proud to commit our know-how and turnkey hydrogen solutions towards helping Finland deliver on its vision to become a European leader of the green hydrogen economy,” Andy Marsh, CEO of Plug said.

“This investment is significant for Europe, showcasing Finland's international competitiveness and marking a remarkable achievement. With an innovative ecosystem and self-sufficient, carbon-free energy production, Finland has attracted green investments, like that from Plug, into the European value chain. Collaboration with our regions has been outstanding, demonstrating how small towns can lead industrial progress. This project will boost economic activity, create jobs, and foster well-being for years to come,” said Markku Kivistö, Head of Cleantech Industry at Invest in Finland, part of Business Finland.

“We are proud to be at the forefront of the green transition towards a more sustainable economy. We have consistently developed our infrastructure with a focus on attracting industrial in vestments. Kokkola is committed to support the installation of Plug’s project in Kokkola South, and we a re delighted about the estimated several hundreds of industrial jobs that will be created with Plug's establishment,” said Jonne Sandberg, the Development Director of Kokkola.

“In Kristinestad, we have been working for a long time on developing green energy through wind power, solar power, and hydrogen. We are a European pioneer in the green transition. We are doing everything in our power to ensure the success of the project in Kristinestad. It will have positive impacts on the entire region's economy,” said Mila Segervall, the Mayor of Kristinestad.

“A significant clean tech hub is developing in Porvoo. We are pleased to welcome international operators to the Kilpilahti area, which is a key location for the green transition in Finland and Northern Europe. The discussion with Plug has been open and smooth, which is important for the success of the process,” said Jukka-Pekka Ujula, the Mayor of Porvoo.

“I am very pleased to see Plug has identified Finland as the right place for their investments. We have ambitious goals in the hydrogen economy, so investments like this are exactly what we need. This is a big part of the future of Finnish industrial policy,” said Minister of Economic Affairs Mika Lintilä.

At the signing ceremony, Plug also executed memorandums of understanding (MOUs) with Fingrid, Finland’s electricity transmission system operator, and Gasgrid, Finland’s natural gas transmission system operator. Plug is working closely with Fingrid and Gasgrid to ensure electric grid capacities and development of hydrogen infrastructures.