Synthetic fuels company Tree Energy Solutions and renewables outfit CPC Finland have launched a joint company, Luoto Energia, which aims to produce electric natural gas (e-NG), the green synthetic gas made from renewable hydrogen and CO2 that TES produces.
The project, on a 20-hectare site in an extended area of the Port of Rauma, will have an electrolyser capacity of up to 500MW and is expected to produce around 60,000 tonnes of green hydrogen that can be converted into 125,000 tonnes of e-NG (also known as e-methane) per year.
The biogenic CO2 needed for e-NG production will be sourced from Finnish biogenic emitters.
Marco Alverà, Co-founder and Chief Executive of TES, said, “As a drop-in fuel, e-NG can be used to decarbonise sectors such as steel, shipping and heavy transport.”
The green hydrogen may make use of the Nordic Hydrogen Route being developed by Gasgrid Finland, while the produced e-NG can be liquefied and then shipped. Both products can be used to serve European and international end markets.
The Finnish plant is expected to support the decarbonisation of the maritime and industrial sectors where direct electrification is not suitable, and e-NG qualifies as a renewable fuel of non-biological origin (RFNBO) under EU rules.
The joint venture is targeting pre-FEED phase in 2026 and final investment decision by 2028.