Aerial view of the planning reservation area and option area in Oritkari, Oulu.
Aerial view of the planning reservation area and option area in Oritkari, Oulu.

Verso Energy plans a hydrogen plant in Oulu

26.11.2024

French company Verso Energy is reserving a site for a new plant to produce hydrogen and synthetic fuels at the Port of Oulu, northern Finland. Verso Energy has already launched several projects in France to build hydrogen and synthetic fuel plants. Verso Energy’s synthetic fuel production in France will be based on the company's renewable hydrogen production and carbon dioxide recovered from sources such as paper and pulp mills close to the plant. The company offers its synthetic fuels for use in both aircraft and ships.

"We are interested in building a plant for high value-added production in Oulu because the region provides an abundance of affordable renewable energy and biogenic carbon dioxide. The University of Oulu, with its extensive research into hydrogen, alongside the large R&D investments in the area, ensures a sufficient talent pool. The existing business ecosystem also offers us potential customers and subcontractors. As part of the TEN-T core transport network, the Port of Oulu, with its rail and road links, provides good connections to the rest of the world," says Antoine Huard, CEO of Verso Energy.

Electricity in Finland is among the cheapest in Europe. In the first half of 2024, the price of electricity for non-household customers in Finland was the lowest in the EU (€0.0939 per kWh). The Oulu region is the largest producer of renewable electricity in Finland.

Other hydrogen production and H2 derivative projects have already been initiated in the Oulu region. Gasgrid Finland is planning to establish a hydrogen transport infrastructure to connect Oulu’s hydrogen production with the rest of Finland and other European countries.

This land reservation is only a preliminary decision; a final investment decision will be made at a later stage. The project is expected to create a significant number of jobs in the Oulu region, and the scale of the investment is substantial.

AFRY Finland, an expert involved in evaluating the operators, has assessed the likelihood of the project's realisation as high. The company has a clear business plan and focus.

"We warmly welcome Verso Energy to Oulu. The project’s financing is well organised, and the company is supported by the financial resources of its owners. They also have a proven record of raising substantial funding for other projects," says Veikko Lehtinen, City Geodesist from the City of Oulu.

Verso Energy will reveal details about the project at the Northern Power event in Oulu on 13 February 2025. Northern Power will bring together hundreds of international industry leaders, innovators, researchers and policymakers to discuss the future of hydrogen energy in the Nordic region.