ABO Energy and the City of Oulu have signed a cooperation agreement to advance plans for a large-scale green hydrogen production facility in Oulu, northern Finland.

The agreement builds on a site reservation secured in 2025 and establishes a framework for collaboration between the two parties on project development, land-use planning, permitting and the studies required to support the project’s progress.

ABO Energy is progressing plans for a hydrogen production facility in Oulu. The electrolysis capacity could be expanded to up to 600 MW in two to three development phases. Alongside hydrogen production, the company is assessing opportunities to produce synthetic methanol and sustainable aviation fuel (e-SAF) in Oulu, creating additional value through downstream processing. Waste heat generated by the production process is expected to be utilised within the local district heating network. The proposed development would require a site area of up to 41 hectares.

Agreement marks key step towards investment decision

The cooperation agreement represents a milestone in the development process and provides a basis for continued joint planning activities between ABO Energy and the City of Oulu.

“The development of green hydrogen projects requires a strong combination of infrastructure, access to renewable energy and close cooperation with local stakeholders. We are pleased to further explore the potential this project has with our partners,” says Amanda Cardwell, Head of Project Development at ABO Energy Suomi.

ABO Energy Suomi is part of the German renewable energy developer ABO Energy, which will make an investment decision following further project development, technical assessments and commercial evaluation.

Work is already underway on the partial master plan for the industrial park. Land-use planning will take biodiversity considerations into account throughout the development process.

Oulu strengthens position as a leading hydrogen hub

Oulu is currently home to the largest pipeline of planned clean hydrogen production projects in the Baltic Sea region, reinforcing its ambition to become a leading Nordic hydrogen cluster.

” Our objective is to establish the entire hydrogen value chain, from production to downstream processing and end-use applications. I am delighted that our long-term cooperation with ABO Energy is now taking this important next step forward,” says Ari Alatossava, Mayor of Oulu.

Oulu’s hydrogen ambitions are supported by a combination of competitive renewable power, industrial infrastructure and research expertise. Finland benefits from some of Europe’s lowest electricity prices, while the Oulu region is the country’s largest renewable power generation area.

The City of Oulu is systematically developing infrastructure to support the growth of hydrogen-related industries. At the national level, Gasgrid Finland is progressing plans for a hydrogen transmission network that would connect key production and consumption centres.

The city also benefits from a strategic logistics position, including an international deep-water port that forms part of the TEN-T Core Network, together with extensive rail and road connections serving domestic and export markets.

Supporting the region’s industrial ambitions, the University of Oulu is recognised as a major centre for hydrogen research, providing both advanced R&D capabilities and a growing pool of skilled hydrogen professionals.