Finland’s largest hydrogen refining plant is one step closer to starting sustainable aviation fuel production: French Verso Energy and City of Oulu sign co-operation agreement

Finland’s largest hydrogen refining plant is one step closer to starting sustainable aviation fuel production: French Verso Energy and City of Oulu sign co-operation agreement

The City of Oulu in Finland and French company Verso Energy have signed a co-operation agreement aiming to build a hydrogen processing plant in Oulu. Verso Energy intends to construct a plant with a yearly production capacity of 80 000 tonnes of e-SAF. The estimated value of the project is €1.4 billion, and it is expected to create 250 jobs.

Signing the co-operation agreement strengthens the City of Oulu’s status as a key hydrogen hub in the Nordics. Verso Energy’s hydrogen refining plant in the port area of Oulu will be the largest of its kind in Finland so far. The cooperation agreement is valid until the end of 2026.

Antoine Huard, CEO of Verso Energy, stated today at the yearly Northern Power event in Oulu that the biggest city within the Arctic region indeed has everything it takes to produce emission-free aviation fuel in an environmentally friendly way.

Huard says,

Finland is a very attractive country for e-SAF production, and the Oulu site has all the qualities to be a very competitive site at the European level. We are very honoured by the confidence that the elected representatives of Oulu have placed in us,

“The excellence of the cooperative work with both the City of Oulu and the Port of Oulu was decisive for the development of this project, which will allow Finland to demonstrate the potential to reconcile job creation, industrial growth and sustainable development,”

Verso Energy has several hydrogen and synthetic fuel plants in pipeline in France, but the plant being planned for Oulu, Finland, is among the company’s first projects abroad. Verso Energy’s production of synthetic fuels is based on the production of renewable hydrogen on site and biogenic carbon dioxide captured from paper and pulp mills near the site. Verso Energy offers synthetic fuels for both aircraft and ships.

Starting this year, fuel used at the EU’s largest airports must include a 2% blend of sustainable aviation fuel (SAF). Currently, there are no SAF production plants in Finland.

Co-operation agreement prepares for final investment decision

The signing of the cooperation agreement means that the City of Oulu will proceed with the zoning of the Port of Oulu green transition industrial area, and the requirements and objectives of Verso Energy and the City of Oulu will be accommodated in co-operation.

Verso Energy is responsible for the surveys, plans and permits concerning its future site. The agreement enables Verso Energy to commence the planning of plot use, to initiate environmental impact assessment and to begin applying for permits required by their operations. Application for the building permit can also be prepared alongside the zoning process. 

Marko Kipleläinen, Director of Urban Environment Services for the City of Oulu, highlights fluent co-operation as Finland’s strength in attracting the green transition investments.

Kilpeläinen says,

In Finland, the zoning process can run parallel to a company’s project planning, offering more flexibility compared to some other countries.

“The scale of investments required for the green transition industrial projects is so substantial that this kind of phased commitment helps projects move toward the final investment decision more smoothly,”

In addition to the city’s zoning and building control authorities, BusinessOulu, Port of Oulu and the local energy and water companies Oulun Energia and Oulu Waterworks are involved in the planning process. Co-operation with the relevant government authorities is also carried out early on.

Threshold investments to be agreed in more detail

The co-operation agreement remains in effect until the end of 2026. During this period, both parties are committed to advancing the project toward the next phase – the implementation agreement. The implementation agreement will outline key aspects such as threshold investments and the division of responsibilities.

Ari Alatossava, Mayor of Oulu, says :

I am glad that Verso Energy’s project has progressed so smoothly so far.

“This also indicates that our city has a valuable role to play in the green transition. As a city, we create the conditions for companies to invest here. I want to thank the city’s experts for their efforts so far and Business Finland for facilitating the initial contact with Verso Energy,”

He continues,

As the plans for Verso Energy’s project and zoning of the area progress, we will define in more detail how the costs of earthworks and electrification of the area will be shared between the city and the company. However, the overall framework for cooperation for the next two years is clear under this agreement,

The cooperation agreement between Verso Energy and the City of Oulu was sealed at the annual Northern Power business forum, which gathered 450 hydrogen industry professionals in Oulu. At the event, Verso Energy and the Port of Oulu also signed their own cooperation agreement.

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