Tree Energy Solutions (TES), a Belgium-based producer of electric natural gas derived from green hydrogen (e-NG), and energy company CPC Finland have established a joint company, Luoto Energia, that will develop a large-scale e-NG project at the Port of Rauma in Finland.
As disclosed, the project will have an electrolyzer capacity of up to 500 MW and is expected to produce around 60.000 tons of green hydrogen that can be converted into over 125.000 tons of e-NG per year.
“The produced green hydrogen may make use of the Nordic Hydrogen Route being developed by Gasgrid Finland, whereas the produced e-NG can be liquefied and then shipped,” TES said, noting that both products can be used to serve the European end market as well as international markets.
The green hydrogen/e-NG production site, spanning 20 hectares, will reportedly be located in the new extension area of the Port of Rauma at Iso Järviluoto.
It is understood that the plant is expected to support the decarbonization of the maritime and industrial sectors, where direct electrification is not suitable.
TES revealed that CPC Finland has taken the initial key steps in permitting, adding that the joint venture will continue with technical planning and permitting, aiming to enter the pre-front-end engineering design (pre-FEED) phase in 2026 and reach final investment decision (FID) by 2028. As informed, the site already has a legally valid T/kem zoning plan in place.
Marco Alverà, Co-founder and CEO of TES, stated: “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, commented: “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, remarked: “The planning and permitting processes for the Järviluoto harbor 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. With this foundation, it is a good starting point to continue developing the project into its next phases. Green transition projects represent a major opportunity for the Rauma economic region, simultaneously creating new jobs and reducing the use of fossil fuels.”
In other news, it is worth mentioning that TES is in discussions with Advantage Partners (AP), a Japanese private equity fund, to explore potential investments in TES’ e-NG projects, including the Wilhelmshaven Green Energy Hub. Furthermore, the company partnered up with Japanese shipping company Kawasaki Kisen Kaisha (K Line) to accelerate the adoption of e-NG and “lead” the transition towards net-zero greenhouse gas (GHG) emissions in the maritime sector by 2050.