January 19 (Renewables Now) - Finnish energy company Lahti Energia Oy and clean energy developer Nordic Ren-Gas Oy have signed a deal to cooperate on a EUR-250-million (USD 220m) Power-to-Gas (P2G) project that will include the production of green hydrogen and renewable methane.
The two partners will now proceed with the technical and economic feasibility analysis of what would be the largest green hydrogen-related plant investment in Finland. The signing of this cooperation agreement follows a preliminary study carried out last autumn.
The idea is to build a plant in a staged manner next to the Kymijarvi power station in Lahti to produce around 50 million litres of renewable gas fuel per year for heavy-duty use. Lahti Energia expects to receive a significant amount of carbon dioxide (CO2)-free district heating from the plant.
The project will start with a 20-MW electrolyser that should be commissioned in 2025. By the end of the decade, the facility is seen to be expanded to 120 MW and at that point, the developers estimate, nearly 40% of Lahti Energia's district heating could be produced cost-effectively with waste heat.
The entire process is planned to run on electricity from 300 MW of new wind parks that will be contracted under long-term power purchase agreements (PPAs).
The project is to go through the feasibility study and into the next phase this year, while construction work could start in 2023, subject to being successful with all authorisations and financing matters.
(EUR 1.0 = USD 0.881)