Using Plug’s PEM electrolyzer and liquefaction technology, the green hydrogen produced at these sites will support the production of ammonia and green direct reduced iron (DRI), reduce dependence on fossil fuels, and materially support the decarbonization of Europe.
These projects are expected to represent some of the largest investments in the European market. Plug has initiated discussions with large financial investors and debt providers. The company expects capital structure will include a majority of non-recourse debt, similar to other renewable asset financing, and is collaborating with financial partners to secure optimal capital solutions, and industrial partners to secure offtake commitments from creditworthy counterparties before these projects get to FID by the 2025/2026 timeframe.
Today, at a signing ceremony in Helsinki, Plug’s CEO Andy Marsh secured the commitment of three Finnish municipalities to access land, kicking off these historical projects. The sites will be strategically located in Finland to take advantage of its abundant decarbonized and clean energy sources, such as nuclear, wind and hydro power.
- Kokkola, Finland: This site is expected to generate 85TPD of liquid green hydrogen, and up to 700 kt of green ammonia per year, using 1 GW of electrolyzers. The liquid green hydrogen will be produced for local use and for export to western Europe from the Port of Kokkola. Green ammonia will also be exported through the same port.
- Kristinestad, Finland: The 1 GW electrolyzer plant located close to a former coal plant will generate green hydrogen for green steel production (2.0 mt/y of DRI/HBI produced) exported from the port of Kristinestad.
- Porvoo, Finland: This site will produce up to 100 tons per day by 2030. The hydrogen will be used for local mobility and exported through pipeline injection to Western Europe.
For the development of the ammonia plant, Plug is partnering with Hy2Gen, the global project developer of renewable hydrogen, ammonia and hydrogen-based e-fuels. Hy2gen is backed by Hy24, the largest global hydrogen infrastructure fund, by Mirova, a management company dedicated to sustainable investment, by CDPQ, a global investment group investing in the energy transition, by Technip Energies, a leading engineering and technology company for the energy transition, and Trafigura, a market leader in the global commodities industry. Plug will also collaborate with Hy2Gen on the development of hydrogen derivatives (e-fuels, methanol and ammonia) on other projects in the region, enabling industry and transport users to reduce their carbon footprint.
For the development of the DRI/HBI plant, a form of green reduced iron, Plug is partnering with GravitHy, an industrial company dedicated to decarbonizing the steel value chain and in which Plug was a founding partner alongside other large corporations (EIT InnoEnergy, Engie, Forvia, IDEC, Primetals). GravitHy is also developing a similar integrated site which will produce 2 million tonnes of DRI/HBI in the south of France.
At the signing ceremony, Plug also executed memorandums of understanding with Fingrid, Finland’s electricity transmission system operator, and Gasgrid, Finland’s natural gas transmission system operator. Plug is working closely with Fingrid and Gasgrid to ensure electric grid capacities and development of hydrogen infrastructures.
This is a strategically important move for Plug and will enhance European energy security. This scale of electrolyzer capacity accounts for close to 5% of the RePower EU plan, which has targeted 10 million tons of renewable hydrogen produced in Europe by 2030. These projects will support the development of green electricity and green hydrogen around the European backbone pipeline near the Bothnian Bay and contribute to Finland’s efforts to become carbon neutral by 2035, a goal set by the Finnish government in the National Climate and Energy Strategy. Plug’s planned green hydrogen production sites are expected to create around 1,000 direct jobs and over 3,000 indirect jobs, significantly boosting the local economy.
