Nordic Ren-Gas Oy’s Power-to-Gas project granted the largest green transition energy investment support in history
The Ministry of Economic Affairs and Employment has granted the largest green transition energy grant in Finland’s history to Ren-Gas’ Power-to-Gas project planned at Tampere’s Tarastenjärvi. The support amount is EUR 45.8 million and the planned investment is EUR 162 million. Ren-Gas leads the project development, and will arrange the financing of the project and be responsible for the construction of the plant. The project has been developed in a close cooperation with Tampere Sähkölaitos, which has enabled the assessment of the benefits of sector integration already in the planning phase of the project. The environmental impact assessment of the project has started, and the goal is to start commercial production by the end of 2025.
The Tampere Power-to-Gas plant will produce renewable synthetic methane, green hydrogen and district heat. In the first phase, the plant’s planned methane production capacity is 20 MW, and the plant produces more than 160 GWh of renewable gas for the use of heavy road transportation. Enabled by the planned sector integration, the plant will also produce an average of 160 GWh of CO2-free district heating to the Tampere district heating network. The project will reduce CO2 emissions by approximately 75,000 tons per year, as the produced renewable gas replaces fossil fuels in the road transportation, and the heat generated as a by-product of the process reduces the use of peat, wood, waste and natural gas in the production of district heat.
Ren-Gas has very strong expertise in project development and building ecosystems in the energy sector, which, together with an innovative operating model, has enabled the efficient development of the power-to-gas projects. The company has five industrial-scale projects under development in Finland, and the project development is supported by major international infrastructure investor Allianz, whose investment in Ren-Gas was announced in December 2022. As part of the investment, Allianz gets the right to invest in Ren-Gas’ power-to-gas projects in Finland in accordance with the agreed framework. Ren-Gas’ projects support the security of supply and the achievement of carbon neutrality both nationally and locally and take the developing green hydrogen market in Finland by big steps forward. Ren-Gas will build a portfolio of plants in Finland, with the goal of producing 2.5 TWh of clean transport fuels for heavy road transportation by 2030.
“The significant investment support granted to Ren-Gas’ Tampere project is an extremely great demonstration of trust in the operating model we have developed, and a fantastic recognition for our highly competent team. The granted support shows the Finnish government’s clear commitment to developing the hydrogen economy and achieving climate goals, which is important when we are building a new industrial sector in Finland. The development of Ren-Gas’s Tampere facility is progressing rapidly, and with the investment support granted by the Ministry, the realization of the project takes a significant step towards the final investment decision and the start of construction. “, comments Ren-Gas CEO Saara Kujala.
The development of Ren-Gas’s facility planned in Tampere began in the fall of 2021 with a preliminary study of the project and continued during 2022 with a full feasibility analysis. The environmental impact assessment of the project has started, and the goal is to start construction during 2023, and the commercial production by the end of 2025. You can find more information about the project and its progress on the Ren-Gas website at: https://ren-gas.com/projekti/tampere-2/
Nordic Ren-Gas CEO Saara Kujala, p. 040 184 9088
Nordic Ren-Gas Oy is a Finnish power-to-gas developer accelerating the cost-effective decarbonisation of the traffic and energy sector by developing a sector coupled clean power-to-gas production network in Finland. By 2030, the renewable fuels produced by Ren-Gas will cut the use of fossil-based diesel fuel in the heavy-duty traffic by some 250 million litres a year, which represents approximately a fifth of the fuel consumption of heavy-duty traffic. The renewable power-to-gas fuel will reduce carbon dioxide emission in the transport and energy sectors by more than a million tonnes per annum. Ren-Gas’s energy source for its power-to-gas fuels is new Finnish wind power.