Nordic Ren-Gas Wins in the First EU Hydrogen Auction with EUR 45 million Bid
Nordic Ren-Gas Lahti plant has been among selected winners with a EUR 45 million subsidy grant through the European Hydrogen Bank’s first competitive bidding process. This significant financial support will enable Nordic Ren-Gas to scale up its renewable e-methane production in Lahti Finland, and to accelerate the development of the decentralized e-methane production network.
Nordic Ren-Gas has been chosen as a winner with substantial subsidy of €45 million through the European Hydrogen Bank’s first competitive bidding process. This achievement marks a significant milestone for the development of competitive green hydrogen production in Finland. Nordic Ren-Gas’s project stood out among 132 bids in an oversubscribed auction, underscoring the robust confidence in the renewable hydrogen market. With this funding, Nordic Ren-Gas plans to produce within its Lahti plant 122 000 tonnes of renewable hydrogen over the next ten years, thereby circumventing close to 1 million tonnes of CO2 emissions.
The first Hydrogen Bank Auction selected 7 projects out of 132 proposals for the grant agreement preparation stage. Ren-Gas’s project in Lahti is the only Finnish beneficiary, while the rest of the successful projects are in Spain, Portugal and Norway. Ren-Gas leverages the value of sector integration in its development work, which allows for high process efficiency and use of existing infrastructure. The value of sector integration, together with low-cost renewable energy resources in Finland, enabled Ren-Gas to offer a competitive bid in the auction. This demonstrates the strength of Ren-Gas project approach, as well as Finland as an attractive location for green hydrogen development.
Looking ahead, Nordic Ren-Gas will proceed to finalise the individual grant agreement with the European Climate, Infrastructure, and Environment Executive Agency (CINEA). Production is set to commence within five years post-agreement, with the subsidy supporting the company for up to ten years of certified renewable hydrogen production. Nordic Ren-Gas is proud to be at the forefront of the green transition and is eager to contribute to the EU’s 2030 energy and climate targets.
Ren-Gas was founded in July 2021 with the goal of creating a decentralized portfolio of e-methane production plants in Finland. By early 2024, Ren-Gas has six plants in its portfolio, the construction of the first plant in Tampere Finland is targeted to start in 2024, and the production of e-methane in 2026. Ren-Gas has worked with European technology partners to develop a modularized technical concept, secured major European investors for the projects, and established strong partnerships with renewable gas and heat buyers. This approach allows an efficient and timely execution of the development projects, while supporting the European green transition and climate neutrality
More information
Nordic Ren-Gas CFO Juhani Häyrinen, p. +358 50 4677435
Nordic Ren-Gas Oy is Finland’s leading hydrogen economy project developer, constructing a distributed renewable e-methane production network in Finland. The renewable fuels produced by Ren-Gas will reduce the use of fossil fuels in heavy-duty road and maritime transportation by approximately 250 million liters annually. The resulting clean fuel can reduce over one million tons of carbon dioxide annually in the transport and energy sectors. The energy source for the produced e-methane is obtained from Finnish wind power. www.ren-gas.com
