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Hy2Gen Confirms Green Ammonia Plant in Finland

Germany's Hy2gen AG (Wiesbaden, Germany) is planning to construct an 800-megawatt (MW) facility to produce renewable ammonia near the town of Kokkola in Finland.

Released Tuesday, July 04, 2023

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Germany's Hy2gen AG (Wiesbaden, Germany)is planning to construct an 800-megawatt (MW) facility to produce renewable ammonia near the town of Kokkola in Finland.

The investment decision was prompted by the announcement by U.S. electrolysis technology firm Plug Power (NYSE:PLUG) (Latham, New York) to set up the required production of renewable hydrogen at a neighboring site. The companies have agreed to a partnership to develop the site and infrastructure together. Hy2Gen has purchased a 55-hectare site for the ammonia plant from the Kokkola city authorities and said the location, which includes a busy port, is ideal for the transport of large amounts of ammonia.

The proposed plant aims to produce 760,000 tonnes per annum of renewable ammonia. It will use green hydrogen produced by Plug Power at a neighboring site--9 kilometers away--where the company will spend an estimated US$900 million to deploy 1 gigawatt (GW) of electrolysis, powered by 800 MW of renewable energy. Using its own proton exchange membrane (PEM) electrolyser technology, Plug Power's plant will generate 85 tonnes per day (t/d) of liquid renewable hydrogen. It will be used at Hy2gen's plant as well locally and exported to Western Europe via the Port of Kokkola.

"The market for synthetic fuels is developing fast, particularly along the major sea routes and in the European core markets," said Cyril Dufau-Sansot, co-founder and chief executive officer of Hy2gen AG. "We are working hard to support this development towards renewable fuels and energy carriers through our existing presence and various projects in the region. Hy2gen already has a strong presence in the Nordic region as a partner in the Iverson eFuels-project in Norway, developing large-scale green ammonia production as fuel to the maritime fleet. Our partnership with Plug Power will ramp up the necessary production of renewable fuels in the region, where ample renewable energy feedstock, the people and the country's unwavering dedication will facilitate such projects to decarbonize industries and transportation."

Hy2Gen is also a key partner in the Iverson eFuels project in Sauda, Norway, to build a green ammonia plant with a first phase capacity of 600 t/d, and more than 200,000 tonnes annually. With an investment value in excess of 600 million euro (US$654 million), the ammonia will be used to supply the shipping industry with a zero-carbon alternative marine fuel. Construction is expected to kick off late next year with commissioning due in 2027.

Plug Power has zeroed in on the Nordic area with a recently announced plan to develop three green hydrogen production plants in Finland, resulting in the production of 850 t/d of green hydrogen via 2.2 GW of electrolyzer capacity by the end of the decade. In addition to the Kokkola plant, it wants to construct a 1-GW electrolyzer plant at the port of Kristinestad, next to a former coal plant, which will generate green hydrogen for green steel production. At Porvoo, the proposed 250-MW green hydrogen plant will produce 100 t/d for local mobility applications and for export through pipeline injection to Western Europe.

Andy Marsh, chief executive officer of Plug said: "Already one of the largest players in the European hydrogen market, Plug is accelerating its commitment to Europe at an unprecedented scale with these three planned historic industrial sector projects collaborating with both financial and industrial partners. This investment is significant for Europe, showcasing Finland's international competitiveness and marking a remarkable achievement. With an innovative ecosystem and self-sufficient, carbon-free energy production, Finland has attracted green investments, like that from Plug, into the European value chain. Collaboration with our regions has been outstanding, demonstrating how small towns can lead industrial progress.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).

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