REN-GAS GREEN LIQUID FUELS PRODUCTION

Design, implementation and operation of various combined large-scale (~120 MW) synthetic methane and "green" hydrogen production facilities, to be co-located at various combined heat and power stations at several sites in Finland.

The transportation segment accounts for 22% of the CO2 emissions in Finland, out of which 95% is from road transportation. Finland is committed to 50% reduction by 2030 compared to 2005 level, towards being carbon-free by 2045. To drive down the use of fossil-based fuels in traffic, Finland has implemented (as part of wider EU-level regulation) a renewable fuel distribution mandate for fuel distributors, requiring a certain share of renewable content within total fuel volume sold. The Finnish government has created a Roadmap to Fossil-Free Transport, which considers biogas as key to reduce emissions from heavy duty vehicle (HDV) transportation. The roadmap envisages financial incentives, targeting 6200 HDV by 2030 to be operated on renewable gas. The incentive should cover the difference between the purchase price of a gas-fuelled truck and the diesel option. Hence, the project would support EU and national climate and renewable targets for 2030 through the production of renewable hydrogen and derivates (synthetic fuels) to be used in transport. The project would address two main market failures, i.e.: (i) negative carbon externalities, as it ensures the integration of a new renewable fuel in the transport sector, through a large-scale implementation of hydrogen technologies, and (ii) positive learning externalities, as renewable hydrogen and synthetic fuel production can be considered a technology at an early stage of deployment with a significant potential for future cost decrease.

Hydrogen (H2) modules of the project fall under Annex II of the EIA directive and are subject to the Seveso Directive (lower-tier). H2 production needs to be aligned with the sustainability and greenhouse gas (GHG) emission savings criteria of relevant EU directives and regulations, incl. the threshold for substantial contribution to climate mitigation, set by the EU Taxonomy, and the EU criteria for additionality, renewability, and the temporal, geographical correlation of the electricity supply to the H2 electrolyser. The need for environmental impact assessments (EIA) is currently being assessed by the competent authorities.

The project will be operating without exclusive or special rights within the meaning of the EU Utilities Directive 2004/17/EC c.q. 2014/25/EU hence private sector procurement procedures will apply. Equipment and works are expected to be purchased through several contracts for installation and infrastructure (Balance of Plant) of components for a H2 module.