🇫🇮 Government grants €28 million to Nordic Ren-Gas for Lahti plant
The Finnish Ministry of Economic Affairs and Employment has granted €28 million to Nordic Ren-Gas for a major new energy technology demonstration project. The project will see the company build a renewable hydrogen methanation plant in Lahti.
While the Lahti project was granted aid, 12 projects were also granted investment aid under the National Recovery and Restoration Plan (NRP) for a total of more than €44 million. For the Lahti methanation plant, special attention has been paid to the feasibility of the project, as all supported projects must be completed by 30 June 2026. Construction of the plant will start in 2025 and it will be in full production by 2028.
The Lahti renewable e-methane plant is part of the renewable e-methane production network being built by Ren-Gas in Finland. It will produce renewable e-methane and renewable district heating. When completed, the plant will produce more than 400 GWh of renewable e-methane and about 130 GWh of district heat annually. The e-methane produced by the plant will be used as fuel for heavy transport and the waste heat generated will be used in the district heating network of Lahti.
Ren-Gas’ Lahti project was the project of the first EU hydrogen auction in the spring 2024 for the entire European competitive hydrogen sector. The Ren-Gas concept extensively uses sector integration, allowing process heat to be utilised in district heating networks, and the flexible operating model allows active participation in the electricity market. The concept developed by Ren-Gas, combined with strong cooperation with different actors, will enable the realisation of green transition hydrogen investments in Finland.
“Finland is the most competitive country in Europe to produce hydrogen fuels, which will be needed in very significant quantities in the coming decades. Above all, the green transition will be a major opportunity for Finland to create new jobs and livelihoods in Finland. This energy investment aid concretely demonstrates the Finnish government’s commitment to the green transition. The first projects in the hydrogen sector will need investment support, but we can already see the benefits of scaling up in action. The amount of subsidy per fuel produced required from the Finnish government for the Lahti project is already 75% less than the subsidy received by Ren-Gas for the Tampere project in late 2022,” says Saara Kujala, CEO of Ren-Gas.
The total cost of the Lahti plant is more than €300 million. Ren-Gas’ Lahti project also received a 10-year production subsidy for renewable hydrogen production in the EU hydrogen auction in the spring.
Originally published on 14 October by BotH2nia.
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