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Nordic Ren-Gas’ project is progressing in Kotka – the project size has tripled from the original

Kotkan Energia Oy and Nordic Ren-Gas Oy (Ren-Gas) have signed a project development agreement for the Kotka Power-to-Gas production facility that produces renewable methane, green hydrogen and district heating. At the same time, the city of Kotka has reserved a land area in Mussalo for the project. The strong demand for renewable gas and the opportunities offered by the Kotka area for the hydrogen economy tripled the size of the project from the original.

The signed project development agreement takes the Kotka Power-to-Gas project forward in strong cooperation between Ren-Gas and Kotkan Energia. The agreement covers the main terms of project development between the parties, including e.g. conditions for the offtake of flue gases and the supply of carbon dioxide-free district heating. The city of Kotka has reserved a sufficient site for the production plant in the Mussalo harbour area, which will enable the development of a significant hydrogen project in the Kotka area. Ren-Gas is the main responsible developer of the project, taking  the Kotka Power-to-Gas project towards the final investment decision and construction of the plant. The permitting of the project has started, and the goal is to start commercial production by the end of 2026.

The Kotka Power-to-Gas plant has an innovative design, as the plant’s main processes are located separately from each other. A carbon dioxide recovery unit will be built at Korkeakoski in Kotka, which will annually recover a significant amount of carbon dioxide from the flue gases of the Hyötyvoimalaitos. The green hydrogen and synthetic methane production processes will be in Kotka’s Mussalo, where the plant will produce 35,000 tons of renewable synthetic methane per year in its final size. The process heat generated in the production of fuel is used as district heat in Kotka, which reduces the production of district heat based on combustion.

The signed project development agreement is a continuation of the feasibility analysis, which evaluated the technical and economic feasibility of the project. As a result of the analysis, it was concluded that the Kotka area offers wider opportunities than expected for the production of renewable synthetic methane and the project brings benefits to a wide range of parties. The unique implementation concept developed in cooperation enables the realization of a plant investment three times larger than the original plan, and in addition, the location of the renewable fuel production in the Mussalo harbour area opens up opportunities for the export of Finnish clean fuels. The role of energy security in Europe has been emphasized and the demand for clean gas has increased significantly, which has created a strong market environment for clean European renewable gas fuels.

“Kotka’s Power-to-Gas project is a great demonstration of excellent cooperation. In cooperation with Kotka Energia, the city of Kotka, and other stakeholders in the Kotka region, we have developed a plant design concept that enables large-scale renewable fuel production in Kotka, and forms strong basis for the development of the hydrogen economy more broadly. Within the framework of the signed project development agreement, we will continue our excellent cooperation and take the project towards the final investment decision and construction of the facility,” says Nordic Ren-Gas Oy CEO Saara Kujala.

“We are very happy that the Power-to-Gas project is progressing and that the Kotka region can provide an excellent framework for the green hydrogen economy. The project concretely supports Kotka Energia’s carbon neutrality goals by increasing the share of renewable district heating, and at the same time it improves domestic energy security more broadly. Our cooperation with Ren-Gas has been excellent and I am convinced that with the signed project development agreement our great cooperation will continue. “, says Sami Markkanen, CEO of Kotkan Energia.

“We see the Power-to-Gas project as a very positive and welcomed step forward in renewable energy production, and we are really pleased when we can offer the project a site in Mussalo”, says Katri Ervasti, site engineer of the city of Kotka.

The collaboration between Ren-Gas and Kotka Energia began in the fall of 2021 with a preliminary feasibility study of the project and continued during 2022 with a  full feasibility analysis. The goal is to start construction 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/kotka-2/