Fortum Takes the Lead in Finland’s Hydrogen Industry with New Pilot Plant

Fortum, a leading energy company in Finland, is set to invest in a new hydrogen test facility next to its Loviisa nuclear power plant. The pilot plant, valued at 17 million euros, will be funded entirely by Fortum’s research and development funds and is expected to begin construction in the Källa area this summer. The facility is scheduled to be operational by the end of 2025.

The pilot plant will house two electrolyzers – one using alkaline technology and the other using PEM technology – to produce clean hydrogen. Fortum aims to use this facility as its first step in exploring the business opportunities surrounding hydrogen. By testing these mature technologies, the company hopes to gain valuable knowledge on production, operation, and maintenance.

The pilot plant will also include a filling station that will distribute hydrogen to industrial customers. Fortum plans to utilize the facility for about two years to collect data and experiences that will inform future investments and strategic decisions regarding hydrogen production.

Fortum’s overall strategy is to research hydrogen technology in small-scale Nordic projects to assess market opportunities and potential roles in the hydrogen value chain. The investment in the pilot plant may prompt updates to Fortum’s hydrogen strategy post-2028 based on market dynamics and business opportunities. The company is considering its position in the hydrogen value chain and whether it will focus on being a hydrogen producer or a partner in various stages of production.

This strategic evaluation may occur earlier than 2028, depending on the evolving market landscape and technological advancements in the hydrogen industry. Sipola, who leads Fortum’s P2X business, describes the pilot plant as an essential step for Fortum’s entry into the rapidly growing hydrogen market.

In summary, Fortum’s investment in a new hydrogen test facility is an exciting development for Finland’s energy sector. The pilot plant will provide valuable insights into production, operation, and maintenance of mature technologies while also offering an opportunity for future investments and strategic decisions regarding hydrogen production.