Hy2gen plans e-fuel plant in Finland – Oulu becomes largest e-fuel hub in the Baltic Sea Region

The German company Hy2gen has secured a strategic site in Vihreäsaari, at the Port of Oulu in northern Finland, for the development of a new facility to produce renewable hydrogen and synthetic fuels. They are used for decarbonising hard-to-abate sectors, such as the maritime and aviation industries. The proposed 200 MW plant will position Oulu as the largest hub for synthetic fuel production in the Baltic Sea Region, based on the number of Power-to-X (PtX/P2X) projects currently in development.

“Hy2gen is very pleased to have secured a site for our project at the Port of Oulu”, says Hege Økland, Managing Director of Hy2gen Nordic. “We would like to thank the City of Oulu and the Port of Oulu for choosing us as their partner in developing this area. We look forward to future collaboration in bringing our project to life.”

Hy2gen is developing, financing, constructing, and operating facilities that produce Renewable Fuels of Non-Biological Origin (RFNBOs) and other PtX fuels for clients worldwide. Its portfolio spans renewable hydrogen, ammonia, methanol, and PtX fuels such as Sustainable Aviation Fuel (e-SAF).

The company’s first projects are already underway in Germany, France, Norway and Canada. Hy2gen’s current pipeline includes 3.4 GW of projects in planning and construction, with an additional 15 GW in development. In 2023, Hy2gen acquired the Werlte facility in Germany, which at the time was the world’s largest operating power-to-e-methane plant. In spring 2025, CertifHy certified it as the first RFNBO e-methane producer in Germany, in accordance with EU regulations.

Oulu leads as the hydrogen derivative hub

“With this announcement, Oulu now hosts more synthetic fuel production projects than any other city in the Baltic Sea Region”, says Marko Kilpeläinen, Director of Urban Environment Services, City of Oulu.

Previous announcements have come from French company Verso Energy, German firms Energiequelle and ABO Energy, as well as Finnish companies P2X Solutions and Oulun Energia, all of which have outlined preliminary plans for hydrogen and hydrogen derivative plants in the area.

Abundance of cheap, renewable electricity

“Finland boasts some of the lowest electricity prices in Europe, and the Oulu region stands as the largest producer of renewable electricity in the northern Baltic Sea area. The University of Oulu, renowned for its hydrogen research, combined with the city’s position as the third-largest recipient of R&D investment per capita in the EU, ensures access to a highly skilled talent pool. As part of the TEN-T transport network, the Port of Oulu benefits from excellent rail and road connectivity to the rest of Europe and beyond. Furthermore, Gasgrid Finland is planning to establish a hydrogen transport infrastructure to link Oulu’s production capacity with other regions in Finland and across Europe”, says Janne Hietaniemi, Key Account Director of BusinessOulu.

This does not yet constitute Hy2gen’s final investment decision, but now that the City of Oulu has granted the planning reservation, the company will begin preparing more detailed plans. Hy2gen will present further details about the project at the Northern Power event in Oulu on 12 February 2026. The event will bring together hundreds of international industry leaders, innovators, researchers, and policymakers to explore the future of hydrogen energy in the Nordic region.