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16 September 2024 | News

Vetyalfa plans green hydrogen refinery in Vaala, Finland

The green hydrogen refinery project planned by Vetyalfa in the municipality of Vaala in northern Ostrobothnia will involve the construction of a renewable energy-based hydrogen separation and synthetic downstream products plant with a maximum capacity of around 1000 MW. A solar power generation area (about 200 MWp) is also planned to be built adjacent to the plant, which will contribute to the refinery's renewable energy needs.

Vetyalfa plans green hydrogen refinery in Vaala, Finland

The green hydrogen refinery project, when completed, would produce a maximum of 150 000 tonnes of hydrogen and downstream products such as liquid fuels.

The refinery will also have the potential to utilise other wind and solar power capacity developed by the parent company Tuulialfa Oy. In the hydrogen refinery, the electric fuel to be processed from green hydrogen could be, for example, synthetic methane or methanol. The final refined hydrogen product will be specified as the project design progresses.

The hydrogen refinery planning area is located 25 km east of the municipality of Vaala, in the immediate vicinity of highway 22 and the railway network. In addition to the 220 kV transmission line of the existing grid company Fingrid Oyj, a new 400 kV substation and 400 kV and 110 kV transmission lines are planned in the vicinity of the site. The total area covered by the project covers hundreds of hectares, of which the production and processing of hydrogen and its supporting activities would require an area of about 20 hectares. The final size of the hydrogen refinery and solar power production area will be determined as planning progresses.

The project area is located on forestry land. There are no residential or holiday homes in the vicinity.

The hydrogen processing plant will require at least a site plan. If necessary, a sub-zoning plan will also be drawn up.  An EIA procedure will also be required - in particular if the plant produces more than hydrogen by electrolysis, also on the basis of an individual decision. The plant must also apply for an environmental permit, a building permit and a water abstraction permit under the Water Act. For large-scale operations, a chemical safety permit is required.

The hydrogen refinery, if built, would create several dozen permanent jobs, up to a maximum of more than 100. When the refinery is built, the site would employ several hundred people. The indirect employment effects of the hydrogen project would be many times higher due to the need for intermediate goods and subcontracting services from other sectors.

For the municipality of Vaala, the refinery would generate direct tax revenue from property, municipal and community taxes, in addition to tax revenue from local labour. In addition, the green hydrogen refinery would enhance the attractiveness of the municipality and enable the growth of new businesses that need green hydrogen and the electric fuels produced from it. The value of the investment in the hydrogen refinery is calculated in hundreds of millions of euros.