Oulu City and ABO Energy Suomi Oy entered into a cooperation agreement on hydrogen project in Finland at the green transition zone in Pyyryväinen.
The cooperation agreement is an extension of the site reservation agreed upon in 2025. It offers a structure for the two parties to work together on project development and planning for land use, as well as permitting.
ABO Energy is working on proposals to build a hydrogen production plant in Oulu. The electrolysis capacity could be scaled up to almost 600 MW in 2 to three development phases. In addition to hydrogen production, the company is also investigating the possibility of manufacturing synthetic methanol and sustainable aviation fuel – e-SAF in Oulu – generating additional value by means of downstream processing.
It is anticipated that the waste heat generated during the production process will be used in the local district heating grid. The planned development would need a site area of as much as 41 hectares.
This cooperation agreement on hydrogen project in Finland is a significant step towards determining the final investment decision.
The cooperation agreement is a turning point in the development procedure and serves as a foundation for ongoing joint planning activities between both ABO Energy and the city of Oulu.
According to Head of Project Development at ABO Energy Suomi, Amanda Cardwell, “The development of green hydrogen projects requires a strong combination of infrastructure, access to renewable energy, and close cooperation with local stakeholders. We are pleased to further explore the potential this project has with our partners.”
It is well to be noted that ABO Energy Suomi is a subsidiary of ABO Energy, the German renewable energy developer, which will make a decision to invest after additional development of the project, technical evaluations, and commercial assessment.
Apparently, the partial master plan for the Pyyryväinen green transition area is being worked on. In accordance with the values of nature positivity and biodiversity, as well as consumption and compensation aspects, they will be taken into account when it comes to land-use planning at all stages of the development process.
Oulu strengthens its status as a hydrogen hub
Interestingly, Oulu now has the largest pipeline of planned clean hydrogen production projects based out of the Baltic Sea region.
As per Mayor of Oulu, Ari Alatossava, “”Our objective is to establish the entire hydrogen value chain, from production to downstream processing and end-use applications. I am delighted that our long-term cooperation with ABO Energy is now taking this important next step forward.”
The development of Oulu as a hydrogen hub is centered on the new strategy of the city, which emphasizes Oulu’s strengths. Finland has some of the lowest electricity prices in Europe, and the Oulu region is the largest renewable power generation zone in the country. The city of Oulu is on the way to methodically create the infrastructure for the development of hydrogen-related industries. Gasgrid Finland is drawing up plans for a hydrogen transmission network nationally. Oulu has a deep-water port included in the global TEN-T core network and a well-functioning railway and road network.
The University of Oulu is also recognized as a key center for hydrogen research, with advanced R&D competencies and an emerging talent base of qualified hydrogen experts.