Ren-Gas Receives €28 Million Energy Investment Grant for Lahti E-Methane Project
The Ministry of Economic Affairs and Employment has granted a €28 million energy investment subsidy to Ren-Gas for its renewable e-methane production facility in Lahti. The total cost of the project exceeds €300 million and is part of Ren-Gas’ plan to build a renewable e-methane production network across Finland.
The Lahti e-methane production facility will produce renewable e-methane and renewable district heating. Once completed, the facility will produce more than 400 GWh of renewable e-methane and around 130 GWh of district heating annually. The e-methane will be used as fuel for heavy road transportation sector , and the waste heat generated by the facility will be utilized in the Lahti district heating network. Construction is set to begin in 2025, with full production expected by 2028.
Ren-Gas has developed Europe’s most competitive concept for e-methane production. In spring 2024, Ren-Gas’ Lahti project was recognized as Europe’s most competitive hydrogen-sector project during the EU’s first hydrogen auction. The Ren-Gas concept takes advantage of extensive sector integration, enabling the use of process heat in district heating networks, while its flexible operational model allows for active participation in electricity markets. This concept, combined with strong collaboration with various stakeholders, enables the realization of green hydrogen investments in Finland.
“Finland is one of the most competitive countries in Europe for producing hydrogen-based fuels, which will be needed in significant quantities in the coming decades. The green transition represents a major opportunity for Finland to create new jobs and sustainable economic growth. This energy investment grant is a tangible sign of the Finnish government’s commitment to the green transition. The first projects in the hydrogen sector require investment support, but we are already seeing the benefits of scaling. The amount of state support required per unit of fuel produced for the Lahti project is already 75% lower than the support received for Ren-Gas’ Tampere project at the end of 2022,” says Ren-Gas CEO Saara Kujala.
Ren-Gas’ Lahti project is also at the center of the EU’s hydrogen economy development. The project secured a 10-year production subsidy for renewable hydrogen production in the EU’s hydrogen auction this spring, further strengthening its position as Europe’s most competitive hydrogen project. Ren-Gas’ expertise and replicable project concept enable cost-effective scaling of operations, which will drive significant industrial green transition investments in Finland in the coming years.
For further information, please contact:
Nordic Ren-Gas Oy, CEO, Saara Kujala, saara.kujala@ren-gas.com, +358 40 184 9088
Nordic Ren-Gas Oy is Finland’s leading hydrogen economy project developer, building a decentralized renewable e-methane production network in the country. The renewable fuels produced by Ren-Gas will reduce the use of fossil fuels in heavy road transport and maritime shipping by approximately 250 million liters per year. This clean fuel will help reduce over one million tons of CO2 annually in the transportation and energy sectors. The energy source for the e-methane produced by Ren-Gas is Finnish wind power. www.ren-gas.com
