TES and CPC Finland to develop 500 MW e-NG project at Port of Rauma

Tree Energy Solutions (TES) and CPC Finland have announced the formation of a joint venture, Luoto Energia Oy, to develop a 500 MW electric natural gas (e-NG) facility at the Port of Rauma in Finland.

The new plant will produce renewable hydrogen and convert it into e-NG, a drop-in replacement for fossil natural gas, primarily for use in energy-intensive industries and hard-to-abate sectors.

The planned facility will comprise a 500 MW electrolyser, producing approximately 60,000 tonnes of green hydrogen annually. This hydrogen will then be synthesised with biogenic CO₂ to generate more than 125,000 tonnes of e-NG per year using the Sabatier process. The e-NG, chemically identical to natural gas, can be used directly in existing infrastructure and applications, including those in the steel, shipping, and heavy transport industries.

The project will be located in the Iso Järviluoto extension zone of the Port of Rauma, Finland’s third-largest container and break-bulk port. The site offers direct access to maritime logistics, robust rail and road connections, and the developing Nordic Hydrogen Route, enhancing both domestic and international export potential.

“Launching this landmark project in Finland is a major milestone in the energy transition, enabling us to deliver e-NG to the European market, strengthening its energy independence and accelerating the green transition using existing infrastructure,” said Marco Alverà, Co-founder and CEO of TES. “As a drop-in fuel, e-NG can be used to decarbonise sectors such as steel, shipping and heavy transport.”

The facility is expected to create more than 1,000 jobs during the construction phase and around 40 permanent skilled positions once operational. Technical development and pre-FEED activities are set to begin in 2026, with a final investment decision (FID) targeted for 2028. Zoning for the project has already been approved, and early permitting work is under way.

Erik Trast, CEO of CPC Finland, commented: “We are excited to have TES as the development partner in the Luoto Energia project in Rauma. This in many ways is an optimal partnership with truly complimentary skills, where TES possess the inhouse technical and engineering capability, and where CPC possesses proven and extensive experience and knowledge in the permitting and structuring complicated infrastructure projects in Finland.”

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