Tree Energy Solutions (TES) and CPC Finland OY have established LUOTO ENERGIA OY, a joint venture aiming to build a 500 MW green hydrogen and electric natural gas (e-NG) production facility in Rauma, Finland.
With ambitions to produce around 60,000 tonnes of green hydrogen annually and convert it into over 125,000 tonnes of e-NG, the project represents one of the largest synthetic fuel efforts in Northern Europe. Unlike hydrogen, e-NG is a drop-in substitute for fossil-based methane, compatible with current gas infrastructure. Its potential lies in decarbonizing shipping, steel, and other sectors where direct electrification remains unviable.
The plant will be located in the 20-hectare expansion zone of the Port of Rauma—Finland’s third-largest port. Positioned on the Gulf of Bothnia, the site offers access to maritime transport and is well-suited for exporting hydrogen-derived products to European markets.
The plan is to feed biogenic CO₂—sourced from Finnish emitters—into the Sabatier process, where it will be combined with renewable hydrogen to synthesize methane. Unlike fossil-based natural gas, e-NG qualifies as a Renewable Fuel of Non-Biological Origin (RFNBO) under EU RED III legislation, now transposed into Finnish law.
The joint venture expects to enter pre-FEED in 2026 and reach Final Investment Decision (FID) by 2028. The area is already zoned for technical and chemical use (T/kem), reducing permitting lead times.
In addition to e-NG, the facility could supply hydrogen via the planned Nordic Hydrogen Route, led by Gasgrid Finland. While volumes and offtake structures have not been finalized, this connection would enable hydrogen transport into South Finland and neighboring Sweden. The project’s dual-output model—hydrogen and e-NG—offers flexibility as end-use cases evolve.
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