Tree Energy Solutions and CPC Finland OY have formed a strategic partnership through the establishment of LUOTO ENERGIA OY, a joint company focused on developing a major green energy project in Finland. The initiative represents a significant step forward in Europe’s renewable energy transition and synthetic fuel production capabilities.

The ambitious project centres on the production of electric natural gas, a green synthetic gas created from renewable hydrogen and carbon dioxide. The facility will feature electrolyser capacity of up to 500 MW, positioning it among Europe’s largest green hydrogen production installations.

The plant’s annual production capacity is projected to reach approximately 60,000 tonnes of green hydrogen, which can be converted into more than 125,000 tonnes of e-NG per year. This substantial output will serve both European and international markets, addressing the growing global demand for renewable gases.

The green hydrogen and e-NG production facility will occupy a 20-hectare site in the new extension area of the Port of Rauma at Iso Järviluoto. The Port of Rauma, one of Finland’s largest ports located in the southern part of the Gulf of Bothnia, provides strategic access to international shipping routes and existing energy infrastructure.

The produced green hydrogen may utilise the Nordic Hydrogen Route currently being developed by Gasgrid Finland, while the e-NG can be liquefied and shipped to various markets. This dual-product approach maximises the project’s commercial potential and market reach.

The project promises significant economic benefits for the region. During peak construction phases, the development is expected to create more than 1,000 jobs, providing substantial stimulus to the local economy. Once operational, the facility will support approximately 40 permanent high-quality positions focused on plant operation and maintenance.

The Finnish facility is designed to support decarbonisation efforts in maritime and industrial sectors where direct electrification proves unsuitable. The biogenic CO2 required for e-NG production will be sourced from Finnish biogenic emitters, creating a circular approach to carbon utilisation.

The collaboration combines TES’s expertise in e-NG production and commercialisation with CPC Finland’s specialised knowledge in renewable energy integration and advanced technologies. CPC Finland has already initiated key permitting processes, providing a foundation for accelerated development.

The joint venture plans to continue technical planning and permitting activities, targeting entry into the pre-FEED phase by 2026 and achieving Final Investment Decision (FID) by 2028. The site benefits from an existing legally valid T/kem zoning plan, which should expedite the path to construction readiness.

Finland has incorporated EU RED III into national legislation and is establishing itself as a leader in renewable fuels of non-biological origin (RFNBOs), including e-NG. The country’s progressive approach to multi-gas energy systems creates favourable conditions for large-scale synthetic fuel projects.

The e-NG production process utilises the Sabatier process to combine green hydrogen and recycled CO2, creating sustainable synthetic methane that is molecularly identical to natural gas. This compatibility allows e-NG to seamlessly replace fossil fuels while utilising existing infrastructure, qualifying as a Renewable Fuel of Non-Biological Origin under EU Delegated Acts.

Marco Alverà, co-founder and CEO of TES, emphasized the project’s significance: “Launching this landmark project in Finland is a major milestone in the energy transition, enabling us to deliver e-NG to the European market, strengthening its energy independence and accelerating the green transition using existing infrastructure. As a drop-in fuel, e-NG can be used to decarbonise sectors such as steel, shipping and heavy transport.”

Erik Trast, CEO of CPC Finland Oy, highlighted the partnership’s complementary strengths: “We are excited to have TES as the development partner in the Luoto Energia project in Rauma. This in many ways is an optimal partnership with truly complimentary skills, where TES possess the inhouse technical and engineering capability, and where CPC possesses proven and extensive experience and knowledge in the permitting and structuring complicated infrastructure projects in Finland.”

Janne Virta, managing director/CEO of the Port of Rauma, welcomed the development: “The planning and permitting processes for the Järviluoto harbour expansion have required a considerable amount of determined work and patience. All the more reason it is now a pleasure to welcome Luoto Energia to the Järviluoto area. The project’s progress in cooperation with CPC Finland Oy and TES has proceeded in an exemplary manner.”

Broader Energy Hub Development

The Finnish project complements TES’s broader European strategy, including the development of a green energy hub import terminal in Wilhelmshaven, Germany. This terminal will serve as a central distribution point for e-NG, feeding directly into existing energy grid infrastructure and supporting continental decarbonisation efforts.

For more information visit www.tes-h2.com