Lahti Energia and Nordic Ren-Gas signed a project development agreement for the Lahti Power-to-Gas project
Lahti Energia Oy and Nordic Ren-Gas Oy (Ren-Gas) have signed a project development agreement for the Lahti Power-to-Gas plant that produces renewable methane, green hydrogen and district heating. The project development agreement is a continuation of the companies’ excellent cooperation, and a concrete step in advancing one of Finland’s most significant green hydrogen project.
The project development agreement creates a strong foundation for Lahti’s Power-to-Gas project and is a concrete step by Lahti Energia and Ren-Gas to promote the project. The agreement covers the main terms of project development between the parties, including e.g. terms for the utilization of flue gases and the supply of carbon dioxide-free district heating. Ren-Gas is the responsible project developer who takes the Lahti Power-to-Gas project towards the final investment decision and the construction of the plant. The environmental impact assessment and approval of the project has started, and the goal is to start commercial production by 2026.
After completion, the Lahti Power-to-Gas plant produces renewable synthetic methane, green hydrogen, and district heat produced from the process heat. In its final size, the plant would produce 35,000 tons of synthetic methane per year. The renewable gas is used in heavy road transportation, where it replaces fossil fuels while reducing carbon dioxide emissions. To produce synthetic methane, about 110,000 tons of carbon dioxide is recovered from the Kymijärvi power plant in Lahti every year. The process heat generated in the production of renewable gas is utilized in Lahti as district heat, which reduces the production of district heat based on combustion.
The project development agreement is a continuation of the project feasibility analysis carried out by the companies, which evaluated the project’s technical and economic feasibility. The analysis showed that the Kymijärvi power plant area in Lahti is an excellent location for the planned Power-to-Gas plant. During 2022, the role of energy security has been emphasized and the demand for domestic clean gas has increased significantly, which has created a strong market environment for clean domestic gas fuels.
“I am very happy that the project is progressing extremely well in Lahti together with Lahti Energia. We have taken the project forward in close cooperation and concluded that the Kymijärvi area offers excellent opportunities to produce renewable gas fuel and the utilization of process heat in the Lahti district heating network. This makes Lahti a very interesting location for Ren-Gas. The project development agreement signed now creates a clear basis for the further development of the project, which aims at the final investment decision and the construction of the facility in the future,” says Saara Kujala, CEO of Nordic Ren-Gas Oy.
“This is an important project for us in order to achieve carbon neutrality goals and secure competitive district heating in Lahti in the future as well. It is great that Lahti Energia is involved in promoting concrete cutting-edge projects in the hydrogen economy, which contribute to creating the foundation for the energy system of the future. Ren-Gas has taken the project forward with admirable professionalism and our cooperation has been really fruitful. With this agreement, our cooperation will deepen and the green fuel production facility in Lahti will take a concrete step towards production,” says Jouni Haikarainen, CEO of Lahti Energia.
The collaboration between Ren-Gas and Lahti Energia began in the fall of 2021 with a preliminary study of the project and continued during 2022 with a feasibility analysis. The environmental impact assessment and approval of the project has started. The goal is to start construction in 2024 and commercial production in 2026. You can find more information about the project and its progress on the Ren-Gas website at https://ren-gas.com/en/projekti/lahti-2/
