GEN-H Energy is planning a 200–300-megawatt balancing power project in Kotka, Finland, where electricity will be generated from natural gas without carbon dioxide emissions. Hycamite’s equipment – based on methane pyrolysis – will be integrated with an electricity-generating gas-fired power station. The companies have signed a memorandum of understanding on the matter.

Hycamite’s methane-splitting process produces hydrogen and solid carbon without direct greenhouse gas emissions. Unlike conventional natural gas combustion, the carbon is recovered in solid form rather than released as carbon dioxide. The hydrogen generated can be used immediately for power generation, with water vapour as the only combustion by-product.

The proposed facility forms part of GEN-H’s wider vision for a major clean energy and industrial hub at Sunila industrial district in Kotka. The broader development includes renewable energy generation, hydrogen-based energy systems, pilot and research activities, and a cluster of companies supporting the green industrial transition. A solar power plant with a capacity of up to 100 MWp is also planned for the nearby Hietanen harbour area.

“Sunila is emerging as a significant hub for industrial decarbonisation and zero-emission energy production,” said Sami Somero, Managing Director of Kiinteistö Oy Sunila, which owns the site and its buildings. “The extensive use of existing industrial infrastructure and the strong synergies between different operators are key drivers of the development. Hycamite’s technology offers the opportunity to transform the former pulp mill’s power generation facilities into a zero-emission energy asset. With new businesses establishing operations in the area, Sunila also has the potential to become a major source of employment in the Kotka region.”

As Europe’s energy system becomes increasingly reliant on renewable generation, interest in long-duration balancing solutions continues to grow. While battery storage is highly effective for short-term grid balancing, hydrogen-based generation can provide reliable backup power during extended periods of low wind and solar output.

“Decarbonised natural gas creates new opportunities for large-scale, emission-free flexible power generation,” said Matti Malkamäki, CEO of Hycamite. “Gas turbines can respond rapidly to fluctuations in renewable power generation, and hydrogen-based generation can provide electricity even during prolonged periods of low renewable output, such as cold and windless winter weeks.”

The solid carbon produced during the process can be supplied as an industrial raw material. Hycamite is also developing applications for high-value carbon products, including battery-grade graphite for electric vehicle batteries.

Compared with electrolysis-based hydrogen production, methane splitting requires only a fraction of the energy input, enabling cost-effective hydrogen production regardless of renewable electricity availability. As a result, the technology could help provide a dependable source of low-carbon hydrogen for power generation and industrial applications.

A key advantage of the Sunila site is its existing energy infrastructure. The former pulp mill was historically a major energy consumer and remains connected to Finland’s national natural gas network. The on-site connection point, with a capacity of 145-270 MW, provides access to the wider gas transmission system, including import terminals and storage facilities.

Planning and permitting activities for the wider Sunila redevelopment are currently under way, while legacy pulp mill equipment is being dismantled to prepare the site for future investment. The site’s existing natural gas grid connection and the potential upgrade of Sunila’s current power generation assets create a pathway for an accelerated feasibility assessment, potentially enabling a rapid final investment decision on the flexible power plant project.

The project highlights the growing role of hydrogen-enabled power generation in supporting energy security, grid stability and industrial decarbonisation as Finland and Europe expand renewable energy capacity.