Swedish electro-fuels (eFuels) project developer Liquid Wind AB and Finnish municipal energy company Turun Seudun Energiantuotanto Oy have announced the signing of a Memorandum of Understanding (MoU) for the development of an electro-fuel (eFuel) facility in Naantali, Finland.
Turun Seudun Energiantuotanto Oy (TSE) is owned by Fortum Power and Heat Oy, Oy Turku Energia, and the City of Naantali. The company produces district heating in the Turku region for around 200,000 inhabitants and electricity to the national grid mainly with renewable biomass at its power plants in Naantali and Turku.
The MoU indicates the launch of close cooperation and is seen by the parties as one of Finland’s “most significant green hydrogen projects” supporting the clean energy transition and domestic competitiveness by utilizing existing and large infrastructure.
This is an important project for us to achieve the climate goals of our owners and to secure renewable district heating for the Turku region in the future. We are very pleased that TSE is involved in promoting concrete domestic hydrogen economy projects and supporting the creation of future energy systems. This agreement solidifies our cooperation with Liquid Wind and enables the production of renewable fuel in Naantali, commented Pertti Sundberg, MD of TSE, and Timo Honkanen, CEO of Turku Energia Group.
Co-located with Naantali 4
The eFuel facility is planned to be adjacent to TSE’s local power plant Naantali 4 which will deliver biogenic carbon dioxide (bioCO2) and steam for the production of eMethanol.
In addition, the process and waste heat of Liquid Wind’s facility will be used for district heat, reducing the share of waste-based district heat production by TSE.
Once operational, the eFuel facility will produce 100,000 tonnes of eMethanol per annum from green hydrogen and bioCO2.
The final investment decision (FID) is planned for 2026, and the facility will be operational in 2029.
We are glad to jointly promote this project that aligns with the circular energy economy and resource efficiency principles. Liquid Wind has large-scale project capabilities and is a valuable partner for TSE. This industrial integration also strengthens the position of the Naantali power plant, enabling it to supply new commodities for methanol production while it continues to produce electricity and heat for customers in the Turku region and TSE’s investments remain moderate, said Mika Lehtonen, Chairman of the TSE Board and Head of Fortum’s Heating and Cooling business in Finland.
Liquid Wind acts as the main project developer and has started the environmental impact assessment and permitting process. In addition, the parties will jointly explore the possibilities of ensuring a sufficient supply of renewable electricity to produce eMethanol.
We are very happy to announce the development of our eFuel collaboration project with TSE. By entering this MoU, we are combining our companies’ strengths to promote and accelerate the clean energy transition both locally and globally. Locally, in the city of Naantali, we will focus on carbon capture and utilization and the reuse of CO2 and waste heat. Globally, we aim to support the transition by allowing our off-takers to shift from fossil fuels to low-carbon eFuel produced at this facility, Claes Fredriksson, CEO and Founder of Liquid Wind.
eMethanol is a very versatile commodity that can replace fossil fuels in hard-to-abate sectors such as shipping and aviation while reducing CO2 emissions.
This large investment project is an important step in the green transition of the former Neste harbor area which the city is committed to. Responsibility plays an important role in the city’s strategy, as does vitality. The Naantali eMethanol production facility fulfills both of our strategic goals, concluded Laura Leppänen, Mayor of the City of Naantali.
