Simo set to host billion-dollar hydrogen plant

A large hydrogen production facility with an electrical output of 300 megawatts is being planned for the nuclear power plot in Simon Karsikko, which was once reserved for Fennovoima. The facility is expected to produce about 20,000 tons of hydrogen per year, making it more than ten times larger than P2X Solutions’ 20 megawatt green hydrogen and synthetic methane production plant in Harjavalla.

The hydrogen plant is scheduled to be built in 2028 by Finnish energy processing company eFactory, which is part of Storm Energy established in 2020. They plan to use their own inexpensive wind electricity to produce green hydrogen. Copenhagen Infrastructure Partners, a Danish investment fund, is a partner in the project and has invested over two billion euros in green projects in Finland.

Tuomas Candelin-Palmqvist, chairman of the board of Myrsky and eTehtaa, mentioned that the Danish fund is a partner but not a partner in the company. Myrsky has more than 50 wind power projects across Finland, with plans to expand into hydrogen production. At the end of last year, there were 33 hydrogen projects under development in Finland, with the largest electrolysis facilities planned in Kokkola and Kristiinankaupunki by 2030.

The project in Simon is estimated to cost close to one billion euros, and financing partners are being sought, with Danish money being one option. The municipality of Simon has entered into an agreement with eTehdas to start hydrogen production in Simon Karsikko, near the city of Kemi.

The project aims to replace five percent of the aviation fuel used in Finland per year with green hydrogen. The waste heat generated in the production of green hydrogen could potentially be used in greenhouse cultivation, with plans to zone land near the hydrogen plant for this purpose. Discussions with experts in greenhouse cultivation from Närpö have taken place to acquire more knowledge for the project.

In the long term, the production of tomatoes and cucumbers in Finland and other Nordic countries is expected to increase due to water shortages in Southern Europe. The project in Simon could potentially lead to the production of flowers instead of overproduced crops like tomatoes and cucumbers.