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Nordic Ren-Gas secures Finland’s largest green energy transition grant

Nordic Ren-Gas secures Finland’s largest green energy transition grant
Commissioned in 2016, the Tammervoima combined heat and power (CHP) plant in Tampere processes around 170,000 tonnes per annum of municipal solid waste (MSW)collected from 600,000 residents in the regions of Pirkanmaa and Jyväskylä. A so-called base load plant that runs throughout the year, it supplies around 400 GWh of district heat and 70 GWh of electricity annually and is an excellent source of carbon dioxide (CO2) for Nordic Ren-Gas that is planning to build a power-to-gas (PtG) facility (photo courtesy Tammervoima).

Finnish power-to-gas (PtG) project developer Nordic Ren-Gas Oy has disclosed that Finland's Ministry of Economic Affairs and Employment has granted the company the largest green energy transition grant in the country's history for its Tarastenjärvi PtG project planned in Tampere.

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Nordic Ren-Gas is leading the project development of the Tarastenjärvi PtG project in Tampere which is being developed in close cooperation with compatriot energy group Tampereen Sähkölaitos Oy.

The estimated EUR 162 million investment of which the support amount is EUR 45.8 million – the country’s largest green energy transition grant awarded to date – will enable the production of renewable synthetic methane (eSNG or e-methane), green hydrogen, and district heat.

The significant investment support granted to Ren-Gas’ Tampere project is an extremely great demonstration of trust in the operating model we have developed and a fantastic recognition for our highly competent team. The granted support shows the Finnish government’s clear commitment to developing the hydrogen economy and achieving climate goals, which is important when we are building a new industrial sector in Finland, said Saara Kujala, CEO at Nordic Ren-Gas.

Commercial production by the end of 2025?

The development of Ren-Gas’s facility planned in ​​Tampere began in the fall of 2021 with a preliminary study of the project and continued during 2022 with a full feasibility analysis.

The environmental impact assessment (EIA) of the project has started, and the goal is to start construction during 2023, with the start of commercial production by the end of 2025.

In the first phase, the plant’s planned methane production capacity is 20 MW, and the plant produces more than 160 GWh of renewable gas for the use of heavy road transportation.

Enabled by the planned sector integration, the plant will also produce an average of 160 GWh of carbon dioxide (CO2) free district heating to the Tampere district heating network.

The proposed project will reduce CO2 emissions by approximately 75,000 tonnes per year, as the produced eSNG replaces fossil fuels in road transportation, and the heat generated as a by-product of the process reduces the amount of peat, wood, waste, and fossil gas used in the production of district heat.

The development of Ren-Gas’s Tampere facility is progressing rapidly, and with the investment support granted by the Ministry, the realization of the project takes a significant step toward the final investment decision and the start of construction, Saara Kujala said.

Innovative business model attracts investors

Nordic Ren-Gas has strong expertise in project development and building ecosystems in the energy sector, which, together with an innovative operating model, has enabled the efficient development of PtG projects.

The company has five industrial-scale projects under development in Finland, and the project development is supported by major international infrastructure investor Allianz, whose investment in the company was announced earlier in December 2022.

As part of the investment, Allianz has the right to invest in Ren-Gas’ PtG projects in Finland under the agreed framework.

Nordic Ren-Gas aims to build a portfolio of plants in Finland, to produce 2.5 TWh of clean transport fuels for heavy road transportation by 2030.

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