Mikkeli’s Power-to-Gas project is progressing – Nordic Ren-Gas and Etelä-Savon Energia signed a project development agreement
Etelä-Savon Energia Oy and Nordic Ren-Gas Oy (Ren-Gas) have signed a project development agreement for the Mikkeli Power-to-Gas production plant that produces renewable methane, green hydrogen and district heating. In addition, Ren-Gas has reserved a suitable site for the project in the industrial area of Pursiala.
The Power-to-Gas plant project planned for the Pursiala power plant is progressing in Mikkeli in excellent cooperation between Ren-Gas and Etelä-Savon Energia. In the signed project development agreement, parties agreed on the promotion of the next stages of the project and the operating model, e.g. utilization of the flue gases of the Pursiala power plant, and to delivery of the carbon dioxide-free district heat to Mikkeli’s district heating network.
Ren-Gas has agreed to reserve a suitable site for the project in the Pursiala industrial area. Ren-Gas is the main responsible developer of the project, which takes Mikkeli’s Power-to-Gas project towards the final investment decision and the plant’s construction. The permitting of the project has started and the target is to start commercial production by the end of 2026.
Mikkeli’s Power-to-Gas plant will produce renewable synthetic methane, green hydrogen and district heat produced from process heat. The electrical input of the plants is more than 50 MW and the plant produces approximately 12,000 tons of synthetic methane per year. To the production of renewable synthetic gas, a significant amount of carbon dioxide will be collected annually from the Pursiala power plant. The process heat generated in the Power-to-Gas plant is utilized in Mikkeli’s district heating network. This process heat recovery and utilization reduces combustion-based district heat production in Mikkeli.
The signed project development agreement is a continuation of the preliminary study carried out by the companies in 2021 and the feasibility analysis in 2022, which assessed the technical and economic feasibility of the project. The analysis showed that the Pursiala power plant area is a suitable location for the planned Power-to-Gas project, and the results of the analysis strongly support the further development of the project towards construction. The role of energy security in Europe has been emphasized, and the demand for clean gas has increased significantly, which creates a strong market environment for domestic renewable gas fuels.
“The willingness to develop the Power-to-Gas project in Mikkeli has been very strong from the beginning for all parties. The cooperation with Etelä-Savo Energia and the city of Mikkeli has been amazing, and the focus on solutions to promote the project has always been part of the process. I’m really happy that with the signed project development agreement, we can take Mikkeli’s Power-to-Gas project forward, and we can continue the excellent cooperation with Etelä-Savon Energia and other stakeholders in the Mikkeli area,” commented Nordic Ren-Gas Oy CEO Saara Kujala.
“It’s great that such a significant hydrogen economy project is progressing in Mikkeli. This is an important project for us to secure environmentally friendly and competitive district heating in Mikkeli in the future as well. The cooperation with Ren-Gas has been exemplary, and it is great to continue our deepening cooperation in the next stages of the project,” stated Erkki Karppanen, CEO of Etelä-Savon Energia
The collaboration between Ren-Gas and Etelä-Savon Energia began in the fall of 2021 with a preliminary study of the project and continued during 2022 with a feasibility analysis. The goal is to start construction in Mikkeli during 2024 and commercial production by the end of 2026. You can find more information about the project and its progress on the Ren-Gas website at: www.ren-gas.com/projekti/mikkeli-2