Plug Power Inc, a prominent provider of comprehensive hydrogen solutions for the global green hydrogen economy, has unveiled an ambitious plan to establish three green hydrogen production plants in Finland. These plants aim to generate 850 tons per day (TPD) of green hydrogen, equivalent to 2.2 gigawatts (GW) of electrolyzer capacity, by the end of the decade. With a final investment decision (FID) targeted for 2025/2026, Plug Power's advanced PEM electrolyzer and liquefaction technology will enable the production of green hydrogen, supporting the manufacture of ammonia and green direct reduced iron (DRI) and significantly reducing reliance on fossil fuels. This endeavor will play a pivotal role in the decarbonization efforts of Europe.
These groundbreaking projects are anticipated to become some of the most substantial investments in the European market. Plug Power has commenced discussions with major financial investors and debt providers, aiming to structure the capital in a predominantly non-recourse debt format, similar to other renewable asset financing models. Collaborations with financial partners will secure optimal capital solutions, while partnerships with industrial stakeholders will ensure off-take commitments from creditworthy counterparties before reaching the final investment decision milestone in 2025/2026.
During a signing ceremony held in Helsinki, Finland, Plug Power's CEO, Andy Marsh, obtained the commitment of three Finnish municipalities to provide access to land, marking the commencement of these historic projects. The chosen sites will be strategically located in Finland, capitalizing on the country's abundant clean energy sources, including nuclear, wind, and hydro power, to facilitate the production of decarbonized hydrogen.
The first site in Kokkola, Finland, is expected to produce 85TPD of liquid green hydrogen and up to 700,000 tonnes of green ammonia annually, utilizing 1GW of electrolyzers. The liquid green hydrogen will cater to local demand and be exported to Western Europe through the Port of Kokkola. Green ammonia will also be exported via the same port.
The second site in Kristinestad, Finland, will house a 1GW electrolyzer plant adjacent to a former coal plant. This facility will generate green hydrogen for the production of green steel, with a capacity of 2.0 million tonnes per year of green direct reduced iron (DRI)/hot briquetted iron (HBI), which will be exported from the Port of Kristinestad.
The third site in Porvoo, Finland, plans to produce up to 100TPD of green hydrogen by 2030. The hydrogen will be utilized for local mobility purposes and exported through pipeline injection to Western Europe.
To develop the ammonia plant, Plug Power has formed a partnership with Hy2Gen, a global project developer specializing in renewable hydrogen, ammonia, and hydrogen-based e-fuels. Hy2Gen is backed by Hy24, the world's largest hydrogen infrastructure fund, as well as Mirova, CDPQ, Technip Energies, and Trafigura. Additionally, Plug Power will collaborate with Hy2Gen on other regional projects involving the development of hydrogen derivatives such as e-fuels, methanol, and ammonia. These endeavors will enable industries and transportation sectors to effectively reduce their carbon footprint.
For the DRI/HBI plant, Plug Power has partnered with GravitHy, an industrial company dedicated to decarbonizing the steel value chain. GravitHy, in which Plug Power is a founding partner alongside other major corporations such as EIT InnoEnergy, Engie, Forvia, IDEC, and Primetals, is developing an integrated site in the south of France to produce 2 million tonnes of DRI/HBI.
Andy Marsh, CEO of Plug Power, expressed his enthusiasm for the company's expanded commitment to Europe through these historic industrial projects, emphasizing the collaboration with financial and industrial partners. The intention is to leverage Plug Power's expertise and turnkey hydrogen solutions to support Finland's vision of becoming a European leader in the green hydrogen economy.
Markku Kivistö, Head of Cleantech Industry at Invest in Finland, expressed pride in Finland's ability to attract green investments and highlighted the positive impact of these projects on the country's economy, job creation, and overall well-being.
Plug Power also signed memorandums of understanding (MOUs) with Fingrid, Finland's electricity transmission system operator, and Gasgrid, Finland's natural gas transmission system operator, during the signing ceremony. These collaborations with Fingrid and Gasgrid aim to ensure sufficient electric grid capacities and the development of hydrogen infrastructure.
Benjamin Haycraft, EVP EMEA Region, emphasized that Plug Power's goal is to democratize access to green hydrogen in Europe by scaling up manufacturing operations to achieve cost reductions. Finland's abundant decarbonized energy sources and expanding renewable energy capacities position the country as the most strategic location for these transformative projects.
This strategic move by Plug Power will enhance European energy security. The planned electrolyzer capacity represents approximately 5% of the RePower EU plan, which targets the production of 10 million tons of renewable hydrogen in Europe by 2030. These projects will contribute to the development of green electricity and hydrogen infrastructure along the European backbone pipeline near the Bothnian Bay, aligning with Finland's objective of achieving carbon neutrality by 2035, as outlined in the National Climate and Energy Strategy. Moreover, the establishment of green hydrogen production sites is expected to create around 1,000 direct jobs and over 3,000 indirect jobs, significantly boosting the local economy.