EIB approves Ren-Gas 230 MEUR financing framework to back its renewable e-methane projects in Finland
The European Investment Bank (EIB) approves 230 MEUR framework loan agreement for Nordic Ren-Gas’s (Ren-Gas) advanced renewable e-methane project portfolio. EIB is working together with leading European renewable financing banks to support the growth of Ren-Gas’s well designed green hydrogen and e-methane project portfolio in Finland. The Ren-Gas project portfolio optimizes the benefit of sector integration in the emerging green hydrogen industry which is paving the way for reducing carbon emissions and enhancing energy security in Europe.
EIB board of directors have approved a framework for up to 230 MEUR of debt financing for Ren-Gas’s e-methane production portfolio. EIB has assessed the Ren-Gas business model and technical concept in a comprehensive due diligence process and is confident about the viability and scalability of the Ren-Gas portfolio. EIB will make final investments decisions for each Ren-Gas project separately. EIB’s favourable framework decision shows a clear sign of the evolving European hydrogen economy which is advancing through this kind of projects.
Ren-Gas is the leading Finnish green hydrogen and e-methane developer. The company has a decentralized e-methane project portfolio, consisting of six production plants with a total production capacity of 550 MW. The portfolio will generate annually 150 000 tons of renewable e-methane and 2 TWh of renewable heat for the local utilities, resulting in significant annual emission reductions. The projects have been designed in close collaboration with local energy utilities to enable effective sector integration and use of the existing infrastructure.
Ren-Gas has pioneered the e-methane value chain development, and thus is among the first companies that has secured long-term contracts for the green hydrogen and heat from the projects. The guaranteed offtake agreements form the foundation for the project financing for the Ren-Gas project, and the value chain development is crucial for the broader European green transition.
The framework loan agreement for 230 MEUR is a substantial contribution to the development of European green hydrogen economy. Ren-Gas establishes solid partnerships along the value chain to enable the scalable and efficient expansion of the project portfolio. EIB’s framework loan agreement is a great example of these partnerships, as it gives financing clarity for each individual project, while speeding up the execution of the broader project portfolio.
“Our goal from the start has been to create project finance eligible and genuinely sustainable e-methane projects in Finland. The framework loan agreement from EIB for Ren-Gas project portfolio is a major proof of the viability of our well-designed e-methane projects, and a proof for the broader European hydrogen economy.” remarks Ren-Gas CEO Saara Kujala.
”We are very pleased with the collaboration and trust shown by EIB towards our business model and scalable project portfolio. This is an important milestone for us which builds a strong foundation on financing our portfolio of projects” says Ren-Gas CFO Juhani Häyrinen
Ren-Gas was founded in July 2021 with the goal of creating a decentralized portfolio of e-methane production plants in Finland. By early 2024, Ren-Gas has six plants in its portfolio, the construction of the first plant in Tampere Finland is targeted to start in 2024, and the production of e-methane in 2026. Ren-Gas has worked with European technology partners to develop a modularized technical concept, secured major European investors for the projects, and established strong partnerships with renewable gas and heat buyers. This approach allows an efficient and timely execution of the development projects, while supporting the European green transition and climate neutrality.
More information
Nordic Ren-Gas CEO Saara Kujala, p. +358 40 184 9088
Nordic Ren-Gas Oy is Finland’s leading hydrogen economy project developer, constructing a distributed renewable e-methane production network in Finland. The renewable fuels produced by Ren-Gas will reduce the use of fossil fuels in heavy-duty road and maritime transportation by approximately 250 million liters annually. The resulting clean fuel can reduce over one million tons of carbon dioxide annually in the transport and energy sectors. The energy source for the produced e-methane is obtained from Finnish wind power. www.ren-gas.com
