Keravan Energia and Nordic Ren-Gas signed a development agreement for a renewable e-methane production facility
Keravan Energia Oy and Nordic Ren-Gas Oy (Ren-Gas) have signed a project development agreement for the Kerava e-methane production facility that produces renewable e-methane, green hydrogen and district heating. The plant will be located in the area of Kerava Energia’s biopower plant, which offers an excellent infrastructure for the production of competitive renewable fuel.
Kerava Energia and Ren-Gas have analyzed the feasibility of an e-methane production facility for Kerava during 2023. As a result of the feasibility analysis, the parties have concluded that the environment of Kerava Energia’s biopower plant offers excellent conditions for competitive e-methane production. The project development agreement signed enables the effective development of the project in close cooperation between the parties. The agreement covers the main terms of the project award, including e.g. conditions for the utilization of flue gases, the site of the plant area, and the delivery of CO2-free district heating. Ren-Gas is the main responsible developer of the project, which takes Kerava’s e-methane project towards the final investment decision and construction of the facility.
In the e-methane production process, renewable electricity is used to produce green hydrogen in the electrolysis process, which is combined with the biogenic carbon dioxide recovered from the Kerava biopower plant in the methanation process. The e-methane production plant will be built in the immediate vicinity of Kerava Energia’s biopower plant, which enables the efficient recovery of carbon dioxide, as well as the utilization of the generated process heat in Kerava Energia’s district heating network.
The Kerava e-methane production facility will produce 12,000 tons of renewable transport fuel and 150 GWh of renewable district heating annually, which corresponds to approximately 50% of the district heating needs of the Kerava – Nikkilä area. About 45,000 tons of biogenic carbon dioxide are captured annually. The investment cost of the plant is approximately 150 MEUR and the plant will employ 15 people during operation. The renewable electricity used by the e-methane production facility is obtained from Finnish wind turbines through long-term contracts.
In the project concept developed by Ren-Gas, the benefits brought by sector integration extend widely. Renewable e-methane is a competitive fuel for heavy road transport and maritime sectors, where e-methane reduces emissions by replacing the use of fossil fuels. The renewable e-methane produced by Kerava is fed into the existing gas network, from where it can be distributed to end customers both in Finland and more widely in Europe. The heat generated in the production process replaces combustion-based heat production at Kerava, reducing the use of both fossil and wood fuels.
“Ren-Gas has developed a unique operating model to promote the hydrogen economy in cooperation with Finnish energy companies over the past two years. I am very happy that the operating model can now be utilized at Kerava in cooperation with Kerava Energia. Kerava offers an excellent infrastructure for producing competitive renewable fuel and district heat. Ren-Gas’ efficient and competent project development, replicable plant concept, and partnerships in gas distribution and financing will contribute to ensuring the feasibility of this green transition project,” says Saara Kujala, CEO of Nordic Ren-Gas Oy.